The digital currency dipped just below $7,700 before gradually climbing.
Could this be the start of an upward trend that investors have been craving?
Analysis
Bitcoin had fallen drastically yesterday, as it went from the $9,500 level to just below $8,000, and this downward trend had continued during the earlier hours of today. With Google stating that there is a ban on cryptocurrency adverts, the general bearish curve has resulted in a lack of confidence from potential investors and customers.
The negative trend circulating cryptocurrencies in general also stemmed from the US congressional hearing, which took place yesterday. In this hearing it was strongly stated that cryptocurrencies left US Government Officials and other representatives dissatisfied. There is now a push on regulatory bodies to find a workaround and soon make regulation over these currencies more likely than ever.
Forecast
With trading today making a significant recovery and prices are placed above the $8,000 level, there is a sense of retaliation from the digital currency which may spark a replica of the upward trend that we saw last year, although highs of $18-19,000 seem to be unlikely at the moment.
Technical indicators are showing signs of uncertainty as regardless of today's strong performance, the downtrend that we have witnessed recently still leaves potential investors scratching their heads. Should this form continue over the next few days, it may be possible that the attraction and interest that was shown towards the end of last year may reignite.
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Disclaimer: The forecast above is of my opinion and should not be used as a firm indicator to act on the market, but as an insight and thorough analysis of the general movement and trend of the currency pair discussed above.