Right after the ‘Bloody Sunday’ which resulted in a lot of cryptocurrencies sinking, the bad news followed over the past 2 days, leading Bitcoin to hit the $6,100 margin and Ethereum to go below $500 – as well as other cryptocurrencies who were sinking without control.
However, the Bitcoin price has demonstrated a short-term corrective rally over the past 12 hours, rebounding to $6,500 and rising by around 6.5%. The same can be said for Ethereum which is slowly recovering and testing the $500 margin.
This corrective rally of BTC can be mainly addressed to the extremely low Relative Strength Index (RSI) which was 28 on June 13th. The low RSI and the unwillingness of bears to continue the sell-off of BTC at the $6,100 mark led Bitcoin to recover.
Currently, analysts still see the price of BTC as quite volatile and possibly dropping to the lower end of $5,000 before initiating another bull run. Even though many large-scale retail investors and cryptocurrency hedge funds have expressed their optimism on Bitcoin in the mid to long-term trend, the strong downward trend of BTC and its low volume on the crypto market could make the sinking to the lower end of $5,000 no surprise.
The next rally that could come, however, could be fueled by either retail investors or institutional ones that enter the cryptocurrency sector through custodian solutions. In the short-term, however, most investors and analysts agree that the future of Bitcoin remains uncertain.
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