Crypto Market Drops Another $10 Billion as Bitcoin Price is Close to $6,000
Over the past 24 hours, the valuation of the crypto market has dropped by another $10 billion, as bitcoin fell to $6,150 and ether dropped below $435.
Even after recording a steep 5 % 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.
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 3 hours, a further drop below the $6,100 mark is expected.
On a downward trajectory, small cryptocurrencies and tokens often tend to perform worse than major digital assets like BTC, ETH, Ripple, and Bitcoin Cash. Tokens like Power Ledger, Nebulas, Ontology, Pundi X and Bancor, which performed relatively well throughout April and May, dropped by another 10 % in the past 24 hours, after recording large losses in the past 3 days.
The low volume and lack of demand from bulls have reduced the probability of a corrective rally occurring in the next 24 to 48 hours. If bitcoin can recover back to $6,300 and stabilize in that region, it could eye a move towards $6,400. However, if BTC fails to find any momentum at this price range, a further drop below $6,000 is inevitable.
Where are $50k and $60k Price Targets Coming From?
Based on the trend of the market over the past 2 weeks, the $50,000 price target for BTC of many large investors and experts seem truly difficult.
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).
Bitcoin could certainly rebound past its all-time high and eye a rally to $50,000 in the long-term. As Coinbase CTO Balaji Srinivasan said, the crypto sector has always gone through the pattern of bubble-crash-build-rally since 2010.