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

The bitcoin price has the potential to soar as high as $14,000 by the end of 2019, according to eToro analyst Simon Peters. | Source: Shutterstock

By 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 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.

The price has been stabilizing above $3,500. But this is crypto. | Source: Bloomberg

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.

Impending Short-Term Bitcoin Rally?

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.

A marked improvement from the very recent 5-day low of nearly 70.

At the time of writing the TSI was around 27, down from a 5-day high of over 44. This is a marked improvement from the very recent 5-day low of nearly 70.

Will The Rally Extend into a Minor or Major Bull-Run?

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.

Again, this is crypto. Anything can happen.

One decidedly bullish trader says:

Zoom out, take a deep breath, close your eyes and use your pineal gland to visualize the future.

The trader known as Hakichan seems to suggest a ridiculous bull run up into the millions of dollars.

Pipe dream predictions are common in crypto-land. Sometimes they come true.

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.

Featured Image from Shutterstock. Price Charts from TradingView.

P. H. Madore has written for CCN since 2014. Please send breaking news tips or requests for an investigation to He lives in Maine, USA. A single father of four young children, he does not discourage financial donations, provided they do not come with strings attached.