Hours after dropping under $7,300, the Bitcoin price has recuperated to $7,550, closing the last 4-hour candle at above $7,600. Even though the initial corrective rally from $7,040 ended with a little dip in the price from $7,500 to $7,300, it is possible expected that BTC will test a support level at $7,800 in the short-term, with the $8,000 region closely in sight.
For BTC to surpass the $7,800 mark and test the $8,500 short-term support level, what’s required is a major buy volume spike in the next 24 hours, which would drive the price of BTC beyond $8,000. The initial corrective rally from $7,040 to $7,500 was produced by a daily buy volume of 10,000 BTC, which is significantly lower than the volume seen in previous successful corrective rallies of February and April.
In February, BTC bounced back from the $6,000 region by recording corrective rallies supported by a sudden spike in buy volumes. The buying volume on April 12 was a staggering 30,760 BTC that pushed its price up from $6,900 to $8,000 in a single 30-minute candle. It was the momentum of that spike which led BTC to secure mid-term impetus, eventually reaching $9,900 and also testing the $10,000 support level.
Bitcoin has failed to break out of the 6 May trend on three instances and still waits to completely recover. BTC needs to continue to exhibit an increase in volume from the $7,550 mark and successfully breach $7,900 in the next 24 hours. This would allow it to establish a bottom at $7,040 and initiate a strong short-term rally up to the $8,500 mark and eventually test $10,000 in the forthcoming weeks.
A drop to the lower end of $6,000 is likely if BTC instead falls back to the $7,300 mark, while a short-term decline to $6,800 is definitely inevitable.
Most cryptocurrencies have been following Bitcoin’s price trend over the fortnight, making the market look uniformly volatile and unstable.
Another reason for the hits taken by the Bitcoin price is the negative public remarks, without any other prominent industry updates to equalise them out. Yale’s Nobel-winning economist Robert Shiller remarked that Bitcoin could be extinct in another hundred years.
He also said that Bitcoin could actually exist, but probably under a different name or mechanism as the rate of forks is already extremely high, and in another hundred years it could just alter Bitcoin altogether, piece-by-piece. Also, Ripple CEO Brad Garlinghouse mentioned that Bitcoin price influence over other altcoins could be over soon.
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