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.
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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