Bitcoin Pushes Through Key Level That Spurred January Rally

(Bloomberg) — Bitcoin is struggling to hold onto gains following a prolonged bout of selling, but at least one measure shows that a rally could be ahead.

Based on the DVAN Buying and Selling Pressure Gauge, Bitcoin jumped above a crucial level of resistance, triggering a positive divergence and a buy signal. A similar trend played out in January ahead of Bitcoin’s surge past $10,000.

“The potential for downward moves remains in these next two weeks, depending on what new health and economic data shows. But the long-term case for crypto has been made stronger by the impacts of this pandemic,” said Richard Rosenblum, co-head of trading at crypto market-maker GSR. “As the dust settles, people will begin to look for a store of value.”

Bitcoin rose as much as 4.4% to $7,048 in New York on Friday, while the Bloomberg Galaxy Crypto Index, which tracks some of the largest digital assets, gained as much as 4%.

Investors are rushing out of riskier assets amid the coronavirus pandemic…