A Bitcoin indicator that foreshadowed the fall of Bitcoin last year is once again flashing red.
The GTI Vera Band Indicator, which monitors up and down trends to identify price patterns, is suggesting BTC’s bullish start to the new year is due for a correction, reports Bloomberg. The same indicator signaled trouble ahead back on July 31st, before BTC began a 31.8% drop from $9,766 to a low of $6,659 on December 18th.
The indicator has already flashed twice this month, right before the top cryptocurrency suffered minor pullbacks.
With Bitcoin at $9,368 at time of publishing – up 3.90% in the last 24 hours according to CoinMarketCap – analyst Josh Rager is feeling bullish.
Although Rager says BTC can easily retreat, he’s not worried about a shift in momentum unless it drops below $8,000.
“How long you bears going to stay bearish? The downtrend is clearly broken on high time frame and if Bitcoin closes above $9557, that’s a higher-high. Sure, BTC could pullback but stop with the $5k calls until price breaks at least below $8k (if it even gets there again).”
Meanwhile, Bloomberg Intelligence analyst Mike McGlone says BTC’s recent price movements suggest the crypto markets are slowly emerging as a hedge against global uncertainty.
“The Bitcoin bid, fueled by declining equity prices amid coronavirus concerns, is indicative of crypto’s growing acceptance as a risk-off diversifier. If the stock market has a more enduring decline, Bitcoin is poised to be a prime beneficiary.”