Analysts remain confident the volatile cryptocurrency can hit new highs
The price of bitcoin has risen by $500 over the last three days to reverse a slide in value that saw the cryptocurrency briefly fall below $8,000 last week.
Bitcoin has experienced a downward price trend since 5 May, when it looked set to break above the $10,000 price point. The last time its value was above that figure was March.
Despite the recent price falls, predictions for bitcoin continue to be positive, particularly from those within the cryptocurrency space.
Most recently, analysts claimed that the price of bitcoin would rally during the annual Consensus conference, which took place in New York last week.
Typically, positive news coming out of Consensus results in a price boost for the cryptocurrency, however this year bitcoin finished the week around $800 down from its value at the start of the week.
This was reflected across all major cryptocurrencies, with the markets falling an average of 10 per cent during the week of Consensus.
Tom Lee, head of research at Fundstrat Global Advisors, said before the conference that he expected bitcoin’s rally to be “even larger than past years,” however was forced to backtrack in an analysis report posted to Twitter.
He blamed the lack of a price rally on a lack of regulatory clarity but still remained optimistic about bitcoin’s outlook.
“Bottom line: While there was not a Consensus bump, our conviction on cryptocurrencies strengthened during the conference,” Mr Lee said.
Other positive predictions from cryptocurrency experts include the views of the investor and self-described “bitcoin evangelist” Alistair Milne, who believes bitcoin will reach between $35,000 and $60,000 by 2020.
Celebrated investor Tim Draper also revealed his prediction last month that bitcoin will soar to $250,000 by 2022 – a price increase that would see bitcoin's market capitalisation increase five-fold to around $5 trillion.