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Bloomberg
Bitcoin’s biggest gain since July is providing some relief to battered cryptocurrency investors, but it may be too soon to call a bottom.
That’s the assessment of Kenetic Capital’s Jehan Chu after Bitcoin rallied, climbing 5.6 percent to $3,980 in Hong Kong. The virtual currency is on course for its largest advance since July 24, according to Bloomberg composite prices. Gains in Ether and XRP helped propel the Bloomberg Galaxy Crypto Index to a 7.5 percent increase.
“What we are seeing is not yet a bottom but a short-term buying opportunity,†said Chu, managing partner at Kenetic Capital, a blockchain investment and advisory company. “Until we have broader adoption of decentralised applications, it will be hard to find a firm floor.â€
One technical indicator that suggested Bitcoin was due a short-term bounce: its 14-day relative strength index. The digital currency’s RSI dropped to a record before the rally, according to Bitstamp prices.