The bitcoin price has struggled to turn around the one-month descending trend since the start of May.
If the upward movement of bitcoin fades, experts predict there could be a decline in the currency to the $6,000 region.
The corrective rally from $7,040 to $7,700 looked optimistic, particularly among short-term bulls who have predicted the price of bitcoin would hit back to the $10,000 region within June.
A short-term break out to the $8,000 region supported by the corrective rally from $7,040 was conditional, as this required the volume of BTC to rise and the cryptocurrency to keep going at its weekly peak.
Due to its low trading volume though, BTC has not met a major short-term support level at $8,000 and so has fallen to to $7,600.
A drop to $7,500 could result in BTC experiencing yet another minor correction, potentially to the higher end of $6,000 or even lower.
Writing for Daily FX, market analyst Paul Robinson said: “Keep an eye on the daily trend-line on weakness – a hold may give us the larger pattern at some point, while a break could lead down towards 6400.”
While, the Relative Strength Index (RSI) of BTC is 43.3, it is not showing an oversold condition for BTC.
Despite the negative price trend of BTC, most multi-billion dollar hedge funds are still extremely optimistic in BTC and the entire cryptocurrency market.
The expected decline in the price of BTC is a five to 10 percent drop maximum, which could extend to 15 percent at its worst.
Tokens enjoy a surge in volume and price when the price of BTC is increasing gradually and volume of the cryptocurrency market picks up.
If BTC enters the $7,500 region, it is likely that tokens will experience a substantial drop in value again.
Source : EXPRESS