The bitcoin price has increased from $7,300 to $7,600 over the past 24 hours, sparking optimism regarding the short-term growth of bitcoin. A break to $7,800 could confirm a short-term rally for bitcoin while a drop below the $7,500 mark could lead it back to the $7,300 region, making $6,000 a possibility, yet again.
The price trend of bitcoin and predictions of analysts are conditional as of current due to the low volume of BTC. While BTC has prevented a further drop to the $6,000 region as it rebounded from $7,300 to to $7,600, the volume remains nearly identical to yesterday. Although the valuation of the cryptocurrency market has improved, the state of the market remains the same.
A break to $7,800 would effectively exceed the descending one-month trend line extending from May 5 to June 5, signifying a potential rally for BTC in both the short to mid-term. The corrective rally of BTC from the $7,040 has ended at $7,500, but based on the daily candle chart of BTC, and given the stability of BTC over the past seven days, it is possible that BTC gains momentum in the upcoming days and re-enter the $8,000 region.
On March 20, BTC broke a descending trendline from March 4, with a strong spike in volume and price. Within five days, the price of BTC increased from $7,800 to $9,200. However, in a period of 15 days, the price of BTC dropped from $9,200 to $6,500, even though the corrective rally was supported with strong volume.
If BTC can record a gradual increase in volume and value throughout June and establish a strong foundation for a potential mid-term rally, it is possible that BTC returns to its previous levels by the end of 2018, possibly back to $20,000. But, if BTC cannot sustain its momentum and falls below the $7,000 mark once again, a drop to the lower end of $6,000 is still a possibility.
This week, Nathaniel Popper from The New York Times reported that Susquehanna International Group, one of the biggest investment firms in the world, has already started to facilitate bitcoin trades.
“We believe that this technology and this asset class is going to change some facet of financial services, and we think it is going to exist forever,” Bart Smith, the head of digital assets at Susquehanna, said.
The firm, which first experimented with BTC in 2014, has started to process the settlement of bitcoin, Ethereum, and Bitcoin Cash futures, enabling institutional investors and large-scale traders to invest in the cryptocurrency market.
The entrance of firms like Susquehanna into the cryptocurrency sector could lead to a domino effect in Wall Street and the global financial sector. While investors are uncertain about the short-term future of the market, the majority of traders are bullish on the long-term growth of bitcoin and the rest of the cryptocurrency market.
Featured image from Shutterstock.
Last modified: May 20, 2020 8:42 PM UTC