Bitcoin seems to have found a solid support base at the moment around the $7000 mark which was first seen at the beginning of February and if history is anything to go by, the cryptocurrency may be in for a rally in the 2ndhalf of the year.
Since the beginning of January, bitcoin has tumble around $10,000 to today’s prices, which has left many speculators out of pocket and afraid to jump back in for fear of further losses.
Some say such falls are healthy for the cryptocurrency market and the gains recently made were unsustainable and investors shouldn’t be looking for similar gains in the future.
"It has been this correction that's been mainly responsible for an evolution in investor attitude. I believe that now the overwhelming majority of investors do not view cryptocurrencies as a way to make a fast buck, as perhaps previously many more might have done." said Nigel Green, the founder and CEO of financial services firm deVere Group
The main contributor to Bitcoins recent decline was the threat of various governments around the world to regulate or even band bitcoin, which may have rendered it worthless, but some say the worries are now over and that combined with a generally historical rise in the 2ndquarter of the year may see the currency rise.
"We've gone to the extreme of the regulation which is South Korea thinking they're going to ban it, the U.S. talking about everything being a security, to walking it back .You're seeing a shift again in that type of thing. I think most of that's behind us." Said Brian Kelly, founder of Brian Kelly Capital.
"There will be a significant rally here if seasonality brings tail winds." He added.