Bitcoin, the flagship cryptocurrency, recently saw its price nearly drop to an eight-month low as it dropped to about $5,900. As things started looking blue its price surged as trading volumes spiked, to a near $6,500 high.
The cryptocurrency has been enduring a bearish trend for the past few months, with the $6,000 mark supporting its price every time it attempted to fall under it. A $5,900 price tag likely meant the support failed to sustain the trend, which saw analysts claim the cryptocurrency could go as low as $3,000.
At press time, it’s up by nearly 9 percent in the last 24-hour period, thanks to two bullish candles that helped it come close to touching $6,500, although the cryptocurrency has since receded to $6,410.
What’s behind the cryptocurrency’s surge is, at press time, still unclear. CME’s bitcoin futures contracts, which some analysts claim are used to manipulate the flagship cryptocurrency’s price, ended this month’s trading yesterday, June 29.
Supporting this theory, social media users pointed out that when CME began trading uranium futures, its price collapsed.
In March of 2007, the CME began uranium futures trading. The Banks got involved and price collapsed.— TF Metals Report (@TFMetals) June 26, 2018
In December of 2017, the CME began Bitcoin futures trading. The Banks got involved and price collapsed.#BigBanksAreNotYourFriend pic.twitter.com/iLlNKPzzX1
Before the bounce Bloomberg published a report revealing that a technical indicator, the Williams Percentage R (WLPR) showed the flagship cryptocurrency was going to surge. The indicator helps chart whether a security is overbought or oversold, and showed BTC was in the oversold region.
This meant it was an ideal entry point for traders and investors, as it had breached level -80 maker of the indicator. This indicator, Bloomberg details, has been accurate over the past year, as in April it showed BTC was overbought before it fell 4 percent.
While positive developments for the cryptocurrency are seemingly scarce various bulls have maintained positive price predictions for this year, with Fundstrat’s Tom Lee stating BTC will be worth $25,000 by the end of the year.
Allianz chief economic adviser Mohamed El-Erian, as covered, has also recently stated that bitcoin is a buy around the $5,000 territory, as per his words crypto believers are likely going to support its price there.