The cryptocurrency market has begun to recover as major cryptocurrencies including Ether and EOS recorded gains of more than 5 percent over the past 24 hours. Tokens such as Ontology (ONT), Storm (STORM), and Tron (TRX) demonstrated gains in the 10 to 15 percent region.
As the bitcoin price struggled against the US dollar and demonstrated significant losses throughout May 10 to 12, small cryptocurrencies and tokens experienced relatively large losses against both bitcoin and the US dollar.
Tokens like ONT, TRX, Storm, 0x (ZRX), WanChain (WAN), and ICON (ICX), which have seen a two-fold increase against bitcoin on average since early April, fell by more than 15 percent against bitcoin.
Ontology in particular dipped below 0.00073 bitcoin, a level it has not dropped to since April 27. But, as the cryptocurrency market started to recover and bitcoin rebounded from $8,100 to $8,500, the price of Ontology surged from 0.0007 BTC to 0.0009 BTC, by nearly 20 percent within a 24-hour period.
Currently, the Relative Strength Index (RSI) and the Williams Percent Range (WPR) of bitcoin are respectively at 44.7 and -81.1, which signify that bitcoin is currently in a neutral zone. Bitcoin is at an ideal position to initiate a short-term rally and recovery over the next few days, despite the sell signals of both exponential and simple moving averages.
Most tokens including Ontology and Tron have followed the price trend of bitcoin over the past 48 hours, increasing in value if the bitcoin price surges upwards and recording large losses as the bitcoin price drops.
Hence, if bitcoin continues to climb to the $9,000 mark, which is likely given the 4 percent increase in the price of bitcoin over the past 24 hours, tokens like ONT, ZRX, TRX, and STORM are expected to record relatively large gains in the short-term.
EOS, which has increased by more than 200 percent from mid-April to May, has dropped by nearly 40 percent over the past two weeks. On April 29, the price of EOS was at 0.0024 BTC and as of May 13, the price of EOS remains below 0.00165 BTC. As bitcoin begins to recover, tokens like EOS that have seen large losses in value in the past few days will likely recover first, ahead of others.
Many traders and investors expect the price of bitcoin to rebound throughout and after the Blockchain Week in New York next week, given historical evidence and data. Bitcoin has typically increased by large margins after the Consensus cryptocurrency conference, as mainstream media outlets and institutional investors develop interest towards the market and the industry. Fundstrat’s research revealed the correlation between Consensus and the price of bitcoin.
Considering the reports around the New York Stock Exchange (NYSE) and Goldman Sachs entering the cryptocurrency market within 2018, it is likely that the Consensus 2018 event will trigger a rise in demand for bitcoin and other cryptocurrencies in the market like Ethereum.