According to a technical analysis conducted with Kenneth Sexton and published on Bloomberg, it seems that the price of bitcoin has stabilized, so much so that it could prepare for a new rally in the short term.
The chart published by Bloomberg recalls that the bitcoin price has recently reached a new bottom, just under 3,500 dollars, but now it seems to have stabilized around this price, with a clear support between 3,000 and 3,100 dollars.
The Bloomberg technical analysis chart on bitcoin also takes into account the Global Strength (GTI) technical indicator of the last 12 months and this suggests that it is approaching oversold levels, with a clock of 35.6, the lowest level since December.
Yesterday, moreover, the lower limit of the TRUE band was also exceeded, but it has already returned slightly above. The TRUE GRI indicator helps to identify trends regarding price fluctuations, and yesterday’s behavior would imply an upcoming short-term rally.
Bloomberg also points out that many investors are wary of the crypto market at this time because of the volatility, but greater price stability may cause them to return. This could also attract more institutional investors.
However, Bloomberg calls this hypothetical rally “short-term”, indicating that the hypothesis is limited to imagining a price increase in the coming days or weeks, without giving further indications on what may happen in the coming months.
In other words, there is no indication of how the price will evolve once this hypothetical short-term rally is over.
Obviously, these are only assumptions and not certainties, but given the origin (Bloomberg), they are to be considered interesting assumptions.