Battered Bitcoin Bulls Can Take Solace in This Technical Signal

(Bloomberg) -- In a dismal year for Bitcoin, one technical gauge suggests investors may be in for a reprieve.

The Williams Percentage R indicator, or WLPR, helps chart whether a security is oversold or overbought. Right now, it’s signaling that the world’s largest cryptocurrency may see a potential reversal of its current downward trajectory.

The analysis captures ideal entry and exit levels for buying or selling an asset. Data show that Bitcoin breached the level -80 marker of the indicator this week, a threshold suggesting to traders it may be time to get in on the action.

Battered Bitcoin Bulls Can Take Solace in This Technical Signal

The gauge has proven fairly accurate over the past year -- for example, when it signaled in April that the cryptocurrency was overbought the day before Bitcoin fell 4 percent.

Bitcoin has fallen almost 60 percent this year after nearly reaching $20,000 in December. On Friday it was trading just under $6,000.

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