The cryptocurrency sector is in a short-term bear cycle. In a highly volatile period like this, positive developments and events that would otherwise lead to a significant surge in the valuation of the cryptocurrency market often do not affect the market in a major way.
As such, in spite of the entrance of financial institutions like the New York Stock Exchange, Goldman Sachs, and JPMorgan, the cryptocurrency market has continued to decline.
Based on the price trend of BTC over the past two months, it is possible that the correction continues to the higher end of the $6,000 region, considering the overly strong downward trend of BTC and other major cryptocurrencies in the global market.
Throughout its recent history, over the past 12 months, bitcoin recorded three major drops. As seen in the 1-day price chart of BTC below, all three correction bounced back on a similar support level at $6,600. When the bitcoin price dropped from $20,000 to the $6,000 region, the bitcoin price rebounded to $12,000 after securing the $6,600 support level.
A similar trend occurred when the price of BTCdropped from $11,000 to $6,400 and so on. It is possible that the BTC price bottoms out in the mid $6,000 region once again and immediately initiate a strong rally back to the $10,000 to $12,000 region.