Santa made his rounds early in the crypto world.
Based on the GTI Global Strength Indicator, the Bloomberg Galaxy Crypto Index triggered a new buy signal following a 13% gain since last Tuesday, the first in a month for the gauge, which measures upward and downward movements of successive closing prices.
In addition, the index is in oversold territory — typically seen as a contrarian signal — and suggests it could be due for a bounce.
Cryptocurrencies are on the rebound following a volatile November that saw prices come under pressure after China took steps to crack down on the space. But the overall market is starting to show signs of stabilization, according to Ed Moya, senior market analyst at Oanda.
“Much of this is being attributed to some exhaustion with the bearish trend that we saw,” Moya said by phone. “Overall demand for cryptocurrencies is still there.”
The Bloomberg Galaxy Crypto Index increased as much as 4.7% on Monday, its second consecutive day of gains. Bitcoin and Ether, its two largest holdings, were also up, jumping as much as 6.7% and 5.3%, respectively. Ether’s rally helped push it into positive territory for the year.