Crypto bounce heartens true believers waiting for market bottom

AFTER one of the worst stretches of losses for cryptocurrencies on record, enthusiasts are taking comfort in a recovery in prices of digital assets including Bitcoin, Ether, EOS and Litecoin.

“It seems as though there’s a broad crypto bounce with all main coins up,” David Thomas, director and cofounder at GlobalBlock, said in an email. “It will take a concerted move higher in cryptocurrencies in order to signal an end to the crypto crash. After such a big move lower this year, there comes a point when investors see value in getting back into the market, and that seems to be the case today.”

For Ether, a technical gauge suggests the bounce could be just the beginning. The GTI VER A Convergence Divergence Technical Gauge, which investors use to detect trend reversals, showed a positive signal on Monday for the first time since late September. The trend may indicate more gains to come and a potential year-end rally. The last time the technical gauge pointed to potential buy signals, the token rose for about a month.

Ether rose as much as 18 percent to $96.73 in New York Monday, its first gain in three days. But the third-largest cryptocurrency has been stuck in a prolonged downward slump recently and has lost nearly 90 percent of its value since February. Bitcoin rallied 12 percent, EOS surged 36 percent and Litecoin jumped 31 percent. Bloomberg News