In last 24 hours, the cryptocurrency market saw major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Bitcoin Cash experience a short-term corrective rally as close to $12 billion was added in the market.
Breathing window for Cryptocurrency, But Entirely Optimistic?
The Bitcoin price rebounded to $6,700 from $6,300, breaking a descending trendline since last 15 days, when BTC achieved $10,000. While it is too early to conclude that BTC has entered into a mid-term rally given that it is still likely for BTC to fall below the $6,000 mark in the short-term, the cryptocurrency market has gained a breathing window from the recent major correction that began in early May.
On yesterday’s report, we noted that if BTC falls below the $6,300 mark, it could initiate another downward trend, which would potentially inch towards the higher end of the $5,000 region. We also predicted that if BTC rebounds to $6,600 in a period of 24 hours, there exists a possibility that BTC could stop at a potential move to the $5,000 region.
So far, BTC has been able to remain relatively stable in the mid-$6,000 zone, with stable volume and moving averages demonstrating some momentum for the dominant cryptocurrency. But, if BTC falls back down to the $6,400 region in the upcoming days, it is likely that BTC will continue its downward trajectory.
The optimism in the market has fairly risen as it turns bullish due to an abrupt surge in volume and price in a small 2-hour window.
If investors want to see BTC remain above the $7,000 mark in the short-term, it will have to reverse the bearish sentiment by restoring the volume and continuing the current upwards trend of BTC
As of now, based on the movement of BTC in the past 24 hours, it cannot be concluded that BTC restored its bullish sentiment and is ready to move to the upside. If BTC does sustain its momentum and volume in the next two to three days and remain above the $6,800 mark, a move towards $7,000 can be a possibility.