Cryptocurrencies

As Crypto Rout Deepens, One Technical Gauge Shows Rally Ahead

  • Trading envelope indicator shows selling pressure may mitigate
  • Bloomberg Galaxy Crypto Index has dropped about 10% this month
Photographer: Andrey Rudakov/Bloomberg
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Amid a protracted sell-off in cryptocurrencies, at least one technical indicator is painting a brighter picture.

Based on the trading envelope indicator, the Bloomberg Galaxy Crypto Index is nearing its lower limit, potentially signaling that selling pressure may dissipate and a short-term rally could ensue. The index, which has lost 10% this month, tracks a basket of the largest digital assets, including Bitcoin, Ether and XRP.