Bitcoin's First Monthly Gain Since July May Not Mean Too Much
(Bloomberg) -- While digital currency enthusiasts should take heart in Bitcoin's first monthly increase since July, the outlook for the original cryptocurrency remains cloudy.
Bitcoin gained 11 percent in February, the largest increase since it rallied 30 percent seven months ago, when it changed hands at around $7,690. It closed at about $3,800 Thursday in New York. Bitcoin helped to push the broader market higher, with the Bloomberg Galaxy Crypto Index increasing 16 percent in February, also the first positive month since July.
“After six months in the red, it's great to finally close one in the green,” Mati Greenspan, senior market analyst at eToro in Tel Aviv, said in an email. “What I've been watching lately are the number of transactions on the Bitcoin blockchain and the total volumes across crypto exchanges, both of which are holding at their highest levels in more than a year.”
Some technical measures followed by traders to forecast price changes would suggest otherwise. Based on the GTI Global Strength Indicator, a measure of upward and downward movements of successive closing prices, Bitcoin is in overbought territory. In addition, the magenta tail in the chart below signals a downtrend forming, which could take the coin to new lows after it failed to sustain $4,000 for the third consecutive month.
For the bulls, the negative technical gauges may not matter.
“Even though we're still officially in a bear market there is plenty of cause for optimism,” Greenspan wrote.
©2019 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
