First Bitcoin Buy Signal This Year as It Stabilizes at $8,000

After posting double-digit losses last week, Bitcoin has surprised traders by stabilizing at the $8,000 seemingly against all odds. Many were writing of a ‘death cross’ and a possible drop further, but it seems that a counter-narrative is now emerging: a major indicator is telling us that it’s actually time to buy.

Global Strength Indicator Goes Bull

For the first time since December 2018, the Global Strength Indicator is pointing towards a strong buy signal. GTI measures the upward and downward movements of a given asset to assess the momentum. Bitcoin’s subdued volatility at the $8,000 price point is rare, and the GSI tells us that this may be the bottom. According to Bloomberg Intelligence analyst Mike McGlone, the indicator should give investors some optimism. He claims that Bitcoin’s maturation process ‘will accelerate into the year-end’ as volatility continues to decline. He goes on to say that the transition from bullish to bearish momentum ‘is over’ and now we are surely in a consolidation phase. McGlone also claims that we will see a slight uptick until year’s end due to the inherent ‘positive bias’ associated with Bitcoin, much like gold. Bitcoin has also held strong against reports of Tether (USDT) eclipsing it as the most used cryptocurrency, as BeInCrypto previously reported. There have also been reports that backers of Facebook’s Libra are opting out of the idea, which is generally seen as a blow to the cryptocurrency industry overall.

Will Bitcoin Hold $8,000?

Bitcoin will have to hold around the $8,000 price point in order for GSI to remain valid. A drop below $7,800 could spell further doom. After a double-digit drop just one day after Bakkt’s release, investors have every reason to be cautious. At the time of writing, Bitcoin is trading at around $8,100. Do you believe Bitcoin will be able to keep itself afloat above the $8,000 price point? Let us know your thoughts below in the comments. 

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