Crypto Bounce Heartens True Believers Waiting for Market Bottom
(Bloomberg) -- After one of the worst stretches of losses for cryptocurrencies on record, enthusiasts are taking comfort in a recovery in prices of digital assets including Bitcoin, Ether, EOS and Litecoin.
“It seems as though there’s a broad crypto bounce with all main coins up,” David Thomas, director and co-founder at GlobalBlock, said in an email. "It will take a concerted move higher in cryptocurrencies in order to signal an end to the crypto crash. After such a big move lower this year, there comes a point when investors see value in getting back into the market and that seems to be the case today."
For Ether, a technical gauge suggests the bounce could be just the beginning. The GTI VERA Convergence Divergence Technical Gauge, which investors use to detect trend reversals, showed a positive signal Monday for the first time since late September. The trend may indicate more gains to come and a potential year-end rally. The last time the technical gauge pointed to potential buy signals, the token rose for about a month.
Ether rose as much as 18 percent to $96.73 in New York Monday, its first gain in three days. But the third-largest cryptocurrency has has been stuck in a prolonged downward slump recently and has lost nearly 90 percent of its value since February. Bitcoin rallied 12 percent, EOS surged 36 percent and Litecoin jumped 31 percent.
“There is good backup to that argument that there’s been such punishment beyond what anyone previously thought and therefore maybe this is the bottom,” said David Tawil, president of ProChain Capital, in a phone interview. “But I don’t think one day makes a pattern.”
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