Bitcoin has endured a bear market for most of 2018 and has seen its price eroded by 80% in the past year. This has also led to the dragging down of the entire cryptocurrency market.
Bitcoin and cryptocurrency investors who have endured a difficult year have been relatively excited by a good start to 2019. Many people are looking forward to global stock exchanges offering bitcoin futures contracts.
There is fresh technical analysis to suggest that bitcoin could be getting ready to jump higher after a significant period of being in decline.
The GTI Vera Convergence Divergence indicator is used by investors to understand the turnaround of trends and this shows that bitcoin is in the middle of its longest buying streak in half a year.
In the past, when this indicator has pointed to possible buy signals, bitcoin has performed well.
“Should buying pressure persist as it has over the past 13 days, bitcoin could continue to see a rise in prices,” Bloomberg reported.
The Bloomberg Galaxy Crypto Index, which keeps track of some of the biggest digital currencies finds itself in its longest buy streak since September of last year which coincided with a bitcoin rally. This buy streak is due to Ethereum’s recent upturn in fortunes. Mate Greenspan, a senior marketing analyst at eToro commented on the new technical data by saying that he believes the market is “much closer to the bottom than we are to the top.”
“I’m seeing an industry that is growing at a very rapid pace right now where we see companies that are involved in bitcoin and blockchain hiring at a rapid rate,” Greenspan told Bloomberg. “We see new projects coming online. We see all kind of indication that people are getting more and more involved in the market.”
As bitcoin and other virtual currencies have dipped in value over the past 12 months, investors have been nervous about slow adoption among retailers and consumers, delays to much awaited institutional investment and the perennial threat of increased regulation.
Most seem confident that the worst is behind us but this is also due to a good number of venture capitalists betting that the market won’t fall further.
So far in 2019, bitcoin and the cryptocurrency market has added $7 billion in value. This boost is due to an upcoming hard fork of the Ethereum network which is observed as a big step towards ethereum’s transition from using a proof of work protocol to proof of stake.