Bitcoin Drops Below $6,500 as Analysts Point to Potential Rebound

Bitcoin, the flagship cryptocurrency, has recently seen its price dip below the $6,500 mark, at a time in which analysts are pointing to oversold conditions and claiming a bull run may be around the corner because of historical trends.

BTC, according to CryptoCompare data, dropped 0.9% in the last 24-hour period, and is currently trading at about $6,480, after dropping from a daily high of $6,550. In the last 30 days, the cryptocurrency’s price plunged from nearly $7,400 to a $6,200 low, before recovering.

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Notably, Bloomberg’s Olga Kharif pointed out an indicator is showing the cryptocurrency is in oversold territory and may be due for a rebound. The Williams %R Indicator, which moves between 0 and -100 to measure overbought and oversold levels for traders who are looking for entry and exit points, has marked the cryptocurrency as oversold, as it’s under -80.

Per Kharif, the last time the cryptocurrency hit this mark in the William %R Indicator, it surged 22%, bouncing from $6,000 to about $7,300. The indicator, however, is known for being prone to false signals, and should be used along with other analysis.

As CryptoGlobe covered, analysis from Element Digital Asset has shown the cryptocurrency usually surges in the fourth quarter. Between 2015, 2016 and 2017 the firm’s data shows there were only a total of 14 days where it closed in the red. Last year, the cryptocurrency saw its price surge nearly 200% in Q4.

While these factors could mean the cryptocurrency may be about to surge, analysts point out bitcoin’s short history could mean the data doesn’t really represent anything, as past rallies could have been coincidental.

Bullish predictions keep on appearing. As covered billionaire investor Tim Draper, who’s well-known for investing in BTC, has claimed the cryptocurrency ecosystem’s market cap will hit $80 trillion within 15 years, as he compared its ongoing development with the gradual growth and adoption of the internet.

Supporting the hypothesis of a potential rally in Q4 of this year are various positive developments. Goldman Sachs has confirmed the appointment of a crypto-friendly CEO, while Morgan Stanley is reportedly set to offer investors the opportunity to bet on bitcoin-related derivatives using “price return swaps.” Citigroup is also planning “Digital Asset Receipts,” which will function in a similar way to American Depository Receipts (ADRs).

Institutional investors may not be the only ones about to enter the market. Overstock, a crypto-friendly online retailer, has announced it’ll sell bitcoin on its website with a recently launched biometric wallet called Bitsy.

The company’s CEO, Patrick Byrne, has claimed Overstock (NASDAQ: OSTK) is going to bridge the gap between traditional finance and cryptos for its retail customer base. The retailer’s core customer segment, per reports, are non-tech-savvy middle-aged women. He said:

There’s a parallel universe emerging with crypto, and I see Overstock as the wormhole between the two universes. You’re going to be seeing us bring this to our retail consumer base.

Ethereum, the second-largest cryptocurrency by market cap, climbed to about $225 this week, after falling to a $167 low. The cryptocurrency’s price has now dropped about 3.3% in the last 24-period and is trading at about $217.