Bitcoin Indicator Flashes a Buy Just as Haven Narrative Falters
GTI Vera Convergence Divergence Indicator sends positive read
Crypto assets posted gains on Monday amid global market tumult
Just as investors begin to question the logic of Bitcoin serving as a refuge amid global financial-market turmoil, a gauge followed by technical analysts suggests there could be more gains ahead.
Based on the GTI VERA Convergence Divergence Indicator, which detects positive and negative trends, the largest cryptocurrency has generated a new buy signal based on its weekend trading, which saw prices surge. It’s the first buy signal since June when looking at this indicator and could potentially signal new highs are ahead.
The tide is rising for Bitcoin compared with other risk assets, said Mike McGlone, an analyst with Bloomberg Intelligence. “Bitcoin should remain a primary beneficiary of growing demand for its store-of-value, quasi-currency asset properties, similar to gold,” he wrote in a note. “Favorable macroeconomic fundamentals -- plunging bond yields and rising stock-market volatility -- appear to have endurance and should further differentiate Bitcoin from other crypto assets.”
Global markets were rocked on Monday after China devalued its currency in response to the Trump administration’s threat to impose new 10% tariffs on the Asian nation’s goods. Bitcoin, and other digital assets, gained as investors rushed into safe haven assets amid the brutal sell-off. Bitcoin rose close to 13% on the day.