What does Bitcoin's first monthly gain since July mean - nothing

While the Crypto-enthusiasts take the news for the first monthly bitcoin gain since July, the prospect of the digital currency remains uncertain.

Bitcoin gained 11% in February, the biggest increase of 30% in the ninth rally 7 months ago, when it was $ 7,690. It closed at about $ 3,800 on Thursday for the end of the month. Bitcoin helped push the broader market upwards, with the Bloomberg Galaxy Crypto Index jumping 16% in the month, also the first positive signal since July.

"After 6 months of red, it's nice to see some profits," said Mati Greenspan, senior market analyst at eToro. "What I'm following lately is the number of Bitcoin blockchain transactions and the total volume of crypto exchanges, both of which remain at their highest levels for the past 12 months."

But technical analysis has a different picture. Based on the GTI Global Strength Indicator, which measures upward and downward movements at consecutive closing prices, bitcoin is in overproduction territory. In addition, the trend seems to be downward, and if it does, it will catch the cryptos to new bottoms if it fails to climb over $ 4,000 for a third consecutive month.

For bulls, negative technical signals may not matter.

"Although we are still in the bear market, there is a good reason for optimism," said Greenspan.

Source: Bloomberg Finance L.P.

Chart: Used with permission from Bloomberg Finance L.P.

Original Post: Bitcoin's First Monthly Gain Since July May Not Mean Too Much

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