Over the past hour, the bitcoin price has increased by 1.4 percent, from $7,410 to $7,550, after recording a sudden spike in buy volume, as shown below in the 30-minute chart of bitcoin below. Cryptocurrency market has also moved up slightly but has struggled to record any major movement.
Bitcoin to $6,000
While several bulls including Wall Street firm Fundstrat founder Tom Lee and John McAfee have expressed their optimistic in regards to the short-term growth of bitcoin, it is highly likely that the bitcoin price drops to the lower end of $6,000, as suggested by cryptocurrency researcher Willy Woo. “I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long timeframes here, looking into June for rough timing of this to play out at a best guess,” said Woo.
Based on the overly strong downward trend of bitcoin, high NVT signal, and volatility, Woo suggested that it is unlikely bitcoin records a major bounce from the current level back to the $8,000 region.
Cryptocurrency investor and Blocktower co-founder Ari Paul raised a similar point on May 25, stating that due the current period of oa low volume consolidation, an abrupt increase in volume and price is not expected. “Always a good bet for vol to mean revert, but this has been a low volume consolidation which is a much weaker setup for explosive moves than a high volume consolidation,” Paul explained.