Bitcoin bulls are in for some long-awaited good news: technical indicators show the biggest cryptocurrency could be poised for gains.
A look at the long-term trend lines in Bitcoin’s Directional Movement Index (DMI) shows it entered a new bullish phase. In addition, the price trends broke out of their VERA band upper limit, widely considered an encouraging sign. The digital token could see a rise as it approaches year-end.
Last year, Bitcoin pushed up from around $6,500 in mid-November to a record high of $19,511 in mid-December. But it hasn’t fared well in the past year. The cryptocurrency is down more than 65 percent since hitting its peak and has bounced between $6,700 and $6,200 for the past two months.
The downtrend comes amid greater regulatory scrutiny of digital currencies and slow adoption. The U.S. Securities and Exchange Commission dismissed requests to list crypto exchange-traded funds over the summer, citing manipulation and market surveillance concerns.