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An indicator that accurately forecast Bitcoin’s rise to $10,000 in January is once again suggesting a rally may be on the horizon.
The DVAN buying and selling pressure gauge has identified a positive divergence and has flipped bullish, according to analysts at Bloomberg. The indicator assesses the underlying momentum of an asset in order to identify buying and selling pressure.
Bloomberg Intelligence analyst Mike McGlone says he expects BTC to stabilize this year and pass a “key test for Bitcoin’s transition toward a quasi-currency like gold.”
Meanwhile, the co-founder of Blockroots, Josh Rager, says BTC will need to hold onto its current line of support at around $6,700 to prevent another move to the downside.
“BTC nice little pullback to support. Price needs to hold this area, with a close below the grey box.
In my opinion, price could be heading back down to low $6,000’s. As long as the price holds here, not worried at the moment. Stop talking $5,000 and $8,000 – pay attention to $6600’s and $7,000 first.”
Meanwhile, a pseudonymous analyst and technical trader who goes by the name George tells his 19,700 followers on Twitter that Ethereum (ETH) is battling resistance at the $140 mark.
If it closes above that line, he believes ETH could begin an explosive move to the upside. If not, he expects ETH to fall back to around $135.
“ETH looks ready to explode… Dump from here and I got my eyes on mid range.”
As for XRP, crypto analyst and trader Michaël van de Poppe says he’s looking to see if it can overcome a longstanding line of resistance against BTC.
If XRP can push past its current price of about 18 cents, he says the crypto asset could rally to 21 cents.
“Would be interesting to see whether XRP can flip this level back for support. Might support further continuation towards 3100 satoshis.”
Featured Image: Shutterstock/Milkovasa