Bitcoin price oversold and could touch bottom: Bloomberg

A new analysis in Bloomberg suggests that the Bitcoin bottom is somewhere around $3,000 or $3,100. Using the GTI Global Strength Technical Indicator, the analysis says that Bitcoin is probably oversold at this point. The Bloomberg report also says “many regular investors remain wary of crypto market.” It suggests that a clear bottom can help reignite mainstream interest in cryptocurrency. Clear support currently exists around $3,100 or as low as $3,000.

The Bitcoin price has been stabilizing above $3,500. But this is crypto. The market could get a bear scare and drop $1,000 tomorrow. It could do the opposite and start a bull run. The latter scenario is unlikely, however, given an overall cooling in sentiments toward blockchain development and crypto adoption. The data from the GTI GSTI suggests a short-term Bitcoin rally is on the cards. Bitcoin, analysts who use this indicator suggest, is likely to boom for a short period before beginning a settling period down to where the majority of its support is, about $4-500 beneath its current price levels. However, the True Strength Indicator, which measures short-term price shifts in market charts, shows a heartbeat monitor over the past five days.

One question that is surely in the back of everyone’s mind is whether or not the likely impending short-term rally could morph into an all-out bull run. News has a way of playing heavily into the Bitcoin trading markets. If news of a bull rally broke, people who regularly fear missing the next all-time high might seize the opportunity and further propel buying activity. Whatever happens, long-term Bitcoin trading is still waiting on an ETF and other big news to spur interest from the mainstream. Nearly half a trillion dollars exited the market over the course of 2018, but a certain portion of that, along with other new money, is bound to re-enter when they feel conditions are right.

Bitcoin Price Oversold, May Have Found a Bottom: Bloomberg Analyst, CCN, Jan 23