Analysis: What Could Push Bitcoin To An All-Time High Now?

The downward trend for cryptocurrencies is continuing – and there is no positive incline following the news that Facebook modified its ban on cryptocurrency advertising. For three straight days, the cryptocurrency market remained stable around the $250 billion mark but with no signs of a potential bullish run.

With no movement on both the upside and downside, many investors are asking themselves if this is the stable point that Bitcoin will find comfort at – especially because of the significantly lower daily transaction volumes.

At this point, it seems like a corrective rally requires a strong daily volume – as demonstrated in the previous rallies throughout May and June. So, a spike on the upside would require a strong volume and momentum which is not the situation that is present these days and weeks.

On June, the daily volume of Ether (which is the cryptocurrency behind Ethereum) was over $3 billion – and the next day it fell to $1.3 billion. For Bitcoin, it was $18 billion dropping to $11 billion which are all clear indications of a bearish situation. The high volatility and uncertainty in the crypto sector took its toll – which is why we are seeing a stable market with no signs of a potential surge.

Therefore, the market always needs a sufficient volume to initiate a corrective rally. As such, it is more likely that the market will drop more – by a small margin in the short-term – instead of recording a movement on the upside.

Currently, analysts predict that the Bitcoin price could dip as low as $5,800 before we see another spike. Bitcoin has experienced a low price over the past weeks and low volume action – which is why a yearly low is also very possible.

Many analysts agree that new money has to come in so that Bitcoin and the rest of cryptocurrencies push forward and lead the market to another bullish run.