Bitcoin is right now traded at a little over $7,300, a price that is definitely not something that was anticipated in the past. The drop in the past 24 hours is around $200. At the moment, the current belief is that the cryptocurrency will go down to around $7,000 in the following days. Ever since May 13 the currency kept going down in value, following the $9,800 spike.
As expected, analysts are divided. Some say the cryptocurrency will remain at the $7,000 value for some time while others believe Bitcoin will go up shortly after that. Digital currency analyst, Willy Woo, believes that Bitcoin can actually go as down as $6,000 in a really short term. Even $5,500 is possible.
According to Woo, the problem is that there is a need to have more blockchain transactional activity in order to justify current Bitcoin price. If this does not happen, price drops are needed to deal with the current difference. Driving up transactional activity is practically needed for prices to go up.
At the same time, Willy Woo highlights that Bitcoin volatility is now too high. However, good news was mentioned in the fact Woo believes Bitcoin price will not go under $5,000 and that price corrections as the ones noticed in 2014 will most likely not happen. He added that a “cryptocurrency bull rally” will happen again but this will only take place in Q3 of 2018.
Willy Woo summarized everything by saying:
So, in summary, by best guess – slow bleed down to $6,800, then a steeper slide to $5,700, then a leveling out of the drop, then a flat zone. This is an educated guess based on volume profile and fundamental data framing the rate of movement.
The truth is that it is quite hard to accept the fact that Bitcoin will go really down as the number of countries that explore Bitcoin benefits and technology is now growing. As an example, Mark Carney, Bank of England governor, declared that his institution is interested in a digital currency that is central bank-issued.