Bitcoin has been lurking around the $3,500 price level, but a recent analysis by Bloomberg reveals that the virtual currency may have oversold or undervalued. Moreover, it could be nearing a bottom of $3,000 to $3,100 based on the GTI Global Strength Technical Indicator. Bloomberg’s analyst also said a short term rally might just be underway.
Bitcoin is Nearing Oversold
Bitcoin, the most speculated cryptocurrency in the market is being analyzed on a daily basis, and the recent review of this digital asset’s price trend states that it may have oversold. Based on the analysis, Bitcoin is nearing an oversold level given that it is clocking around 35.6. Also, it has gotten support at around $3,000 to $3,100 even though it has stabilized at $3,500.
According to Bloomberg:
The GTI Global Strength Technical Indicator for Bitcoin is nearing oversold levels, clocking in at 35.6. That’s the lowest level since December. Bitcoin appears to be stabilizing around $3,500, with clear support at $3,000 to $3,100, the measure suggests.
Investors Are Cautious When Investing in Cryptocurrencies
The report also said some investors have become more cautious when investing in virtual currencies. However, a clear bottom may once again spike their interest in these digital assets. The analysis also implies that a short-term Bitcoin rally may be underway. In this case, the prediction is that virtual asset’s price will spike for a short period before finding its support at around $3,100 if not less.
Despite these analysis and market charts, investors still have to make informed decisions before buying in or selling off their assets. This is because of the volatile nature of the market which sometimes contradicts analysis even if they are precise predictions from experts themselves. As such, the outcome should not come as a surprise whether it’s a bull run or bear run.
Predictions From Cryptocurrency Experts
Asides judging from indicators and general price trend, other cryptocurrency experts, have made positive predictions about this virtual asset. In the same vein, a Twitter user on January 18 brought to the public’s notice that Bitcoin’s off chain trading volume has risen by 63 percent in the past 10 months.
BTCNN on January 7 also informed of the predictions made by Weiss Ratings LLC, a financial rating agency. According to Weiss, Bitcoin will see a new all-time high due to its similar behaviour since 2015. This is a case where its price to fall by 70 percent before seeing a 6300 percent increment. The agency also forecasted that this virtual currency would remain a store of value in 2019.