No Major Movement Over the Past 7 Days
Although it seems as if the market has recovered by large margins and bitcoin has rebounded from its previous dip, BTC has remained in the same region over the past seven days. Last week, on May 27, exactly seven days ago, the price of BTC was $7,560. As of June 2, the price of BTC remains just over $7,600, less than 1 percent higher than its position on May 27.
On May 27, analysts predicted a downward trajectory for BTC and a possible drop below the $7,000 mark. BTC did drop to $7,040, but recovered relatively quickly back to $7,500, as bulls refused to allow bitcoin to drop below a key resistance level at $7,000, which could have led BTC to enter the higher end of $5,000.
The descending trendline from May 6 to June 2, covering two corrective rallies on May 11 and May 21, demonstrate that BTC has the potential to regain momentum at its current level, establishing $7,040 as the bottom.
However, BTC has also replicated the head and shoulders top that was formed throughout May 15 to May 20, which ultimately led BTC to fall from $8,500 to $7,040.
In order for BTC to initiate a short to mid-term rally in the upcoming days, similar to the corrective rally on April 11 that allowed BTC To rise from $6,950 to $8,000 within a one-hour period, BTC would need to experience a significant surge in volume, achieving $8,000 in the next 24 to 48 hours…