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July 12, 2018 @ 16:09 +03:00
Over the past 24 hours, the valuation of the crypto market has dropped by $10 billion, as bitcoin fell to $6,150 and ether dropped below $440. Even after recording a steep 5 percent fall from $6,700 to $6,400 and demonstrating an oversold condition with low Relative Strength Index (RSI), bitcoin struggled to rebound and attempt a corrective rally.
On July 11, CCN reported that a corrective rally is unlikely even with bitcoin at $7,400 due to its low volume and overly strong downtrend. Although bitcoin broke RSI trendlines with optimistic momentum indicators, its low volume at $3.6 billion prevented the dominant cryptocurrency from surging to the upside.
CCN’s report that was released yesterday read: “If bitcoin had rebounded to the $6,600 mark in the past 12 hours, a corrective rally could have occured, delaying or even preventing another drop in the short-term to the lower end of $6,300. However, after briefly recovering to $6,413, the price of bitcoin fell again to the mid-$6,300 region, reducing the probability of a bear trend reversal and corrective rally in the upcoming days.”
The condition of the bitcoin market remains nearly identical, with lower a daily volume and stronger downtrend. The RSI of BTC is still showing oversold conditions, which may lead BTC to climb back up to $6,250. But, at this point, given that BTC has failed to rebound to $6,200 over the past three hours, a further drop below the $6,100 mark is expected.
In essence, $50,000 and $60,000 BTC price targets by the end of 2018 are based on an assumption that a significant change can be made on the regulatory side of the cryptocurrency sector that can enable various publicly tradable instruments like bitcoin exchange-traded funds (ETFs).