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For five days in a row, Bitcoin, Ethereum, and other major cryptocurrencies on the global market have not recorded any losses, maintain momentum. The cryptocurrency market is continuing its move towards the $ 300 billion region, after plunging below $ 243 billion last week.
The little drop of Bitcoin
Since March 31, the cryptocurrency market has been able to make a short-term recovery, bouncing back from the $ 6,500 region. But yesterday, CCN reported that Bitcoin would see a slight drop in value from the $ 7,400 mark before making another strong recovery.
In the past 24 hours, bitcoin has decreased by over $ 400 from $ 7,500 to $ 7,100. At one point, the price of bitcoin dropped below $ 7,000, but it has recovered to $ 7,100 since.
The Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, is currently at 37.1, which means a neutral zone for bitcoin. If the bitcoin RIC continues to fall to 30, it would mean traders have oversold the cryptocurrency. Other dynamic indicators such as the convergence of moving average convergence (MACD) also show a neutral zone for bitcoin, and a lack of momentum for strong short-term performance.
Given that momentum indicators indicate a neutral zone for bitcoin and that moving averages indicate a strong sell signal, it is likely that bitcoin will still fall below $ 7,000. before continuing its mid-term recovery. ]
While technical analysis and dynamic indicators indicate a weak short-term trend for bitcoin, fundamentals remain significantly strong. Earlier this week, Augur co-founder Jeremy Gardner said that the demand for bitcoins from investors in the over-the-counter market has increased significantly in recent months, as the price of bitcoin has fallen rapidly.
Low cryptocurrence prices are beginning to attract retail traders and large investors, which could lead to multi-billion dollar bids. In Bitcoin, over-the-counter markets often refer to direct investor-to-investor or broker-to-investor transactions, or generally to traders who are traded outside the global cryptocurrency currency market.
“The demand for bitcoin on the OTC market right now is nothing like what I’ve seen, many are asking for multi-billion dollar auctions.”
It is quite likely that hedge funds and large investors are looking for investment opportunities in the cryptocurrency market while most major cryptocurrencies are still down compared to their high values.
The slight decline in the price of bitcoin and other major cryptocurrencies has resulted in a slight decline in the valuation of the cryptocurrency market, and investors would not have to fear a new correction in the short term to less than Bitcoin does fall back to the $ 6,000 area, which seems unlikely that step.
Given the growing demand for bitcoins from over-the-counter markets, large investors and hedge funds, and the hesitation of traders to sell the most dominant cryptocurrency at current levels, is likely that the price of bitcoin will rebound in the coming days.
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