It was earlier reported that the $7,700 mark is a very crucial level for bitcoin and if the currency is unable to rise above the $7,700 mark, it could likely go through a short-term drop to the $6,000 level. And today, the bitcoin price dropped to $7,400 increasing the possibility of more declines to the $6,900 region.
Bitcoin’s recent price recovery could possibly come to an end if bitcoin is unable to rally back to $7,700 quickly in the coming day. On April 12, bitcoin’s recovery went from $6,900 to $9,900, but it finally came to a stop after bitcoin was unable to reach the $10,000 level.
The bitcoin price dropped significantly from $11,700 to $6,900 during April, causing fear among investors. Yet investors were convinced of a forthcoming recovery after the rapid recovery of bitcoin from $6,900 to $9,900. But the low volume of bitcoin and the strong hands of bears did not make it possible for bulls to take over the market, staring yet another recovery.
If bitcoin prices go below the $7,200 level in the coming 24 hours, a drop to the $6,000 level is likely. If bitcoin goes through a further drop below the $6,000 region, a swift spike in volume caused by a recovery is likely, which is similar to the recovery made by bitcoin on April 12. If bitcoin drops to the lower end of $6,00o by slowly dropping out from the higher region of $6,900, it may lead to bitcoin going through a mid-term recovery during June. Without a short-term recovery.
From the look of things, bitcoin is going through a strong decline and a sell-off from medium-sized investors and holders. The sell-off is not matching is a rise in demand from both small and large-scale investor, as in the daily trading volume.
However, the cryptocurrency market is highly unstable and the entry of a few large-scale investors could change the market, particularly during a time like this when the volume of bitcoin is still quite low.
Co-founder of Blocktower, Ari Paul a well-known cryptocurrency hedge fund founded by Paul with Goldman Sachs executives, noted that investors can only participate in the market once proper custodian solutions are available.
Paul noted that “[Emergence of reliable custodian solutions] that will allow institutional inflows to start accelerating. Once a couple big traditional money managers announce that they’re including BTC as ‘digital gold’ in their portfolios, others will follow. Again, not instantly, but I think fairly quickly.”
Till that time, it seems doubtful that the cryptocurrency market climbs back to the $500 billion region and bitcoin rallies to its previous all-time high.