Bitcoin could finally be hitting a bottom before heading higher.
The digital currency is lingering above both the price and trend lines and a buying divergence is forming, flashing a positive signal, according to pricing charts that analysts use to forecast future price moves.
Bitcoin’s strong support line held once again at US$6 000, meaning that the downtrend could end; otherwise, the support line has to break. The digital currency tested levels near $6 000 five times since February, bouncing back each time. The last time bitcoin entered this price range, it rallied around 20%.
Cryptocurrencies including bitcoin and ethereum have been trading sharply lower all year due to increased regulator scrutiny and fears that adoption of digital currencies could take longer than some had anticipated.
A Bitcoin ETF was delayed last week as the SEC sought comments on a listing request. At the same time, famed crypto investor and founder of Galaxy Digital Michael Novogratz called a bottom in cryptocurrencies. Bitcoin is down 54% this year. — Reported by Vildana Hajric, with assistance from Kenneth Sexton, (c) 2018 Bloomberg LP