A key indicator is flashing its first buy signal since June.
GTI VERA Convergence Divergence Indicator suggests Bitcoin may be poised to reach new 2019 highs, reports Bloomberg. The gauge utilizes typical moving average convergence divergence (MACD) and attempts to identify increased volatility and delete excess noise.
Bloomberg Intelligence senior analyst Mike McGlone says Bitcoin is showing its prowess as a digital store of value and hedge against global economic uncertainty.
“Bitcoin should remain a primary beneficiary of growing demand for its store-of-value, quasi-currency asset properties, similar to gold.
Favorable macroeconomic fundamentals – plunging bond yields and rising stock-market volatility – appear to have endurance and should further differentiate Bitcoin from other crypto assets.”
Akbar Thobhani, the CEO of crypto prime dealer SFOX, says Bitcoin appears to be solidifying its status as a safe-haven asset.
“[Bitcoin] seems to uniquely enjoy a status as a store of value, similar to gold, which may explain why it is building positive momentum amid the 10% tariff announcements.”
Crypto analyst and derivatives trader Tone Vays, who has leaned bearish in 2019, says that once Bitcoin crossed $11,000, he expected BTC to quickly reach $12K, as it did earlier today. Now, he’s looking for Bitcoin to hold above $11,000.
“This is where it becomes very difficult to explain to new traders. You have to take the bullish trade upon the break of $11,000 because you don’t want to miss out on a giant candle like this.
But it means nothing unless the candle can hold and stay above $11,000. And I still don’t know how to properly explain it to people, where you become a bull at the breakout, but if it doesn’t hold it, you’ve gotta immediately dump that trade.”