Some indicators, experts say, suggest bitcoin could still fall further down

Over the past few days, anxious traders have been waiting for bitcoin’s much-anticipated reversal of tides following its head-scratching 48% price correction to $30,000 that transpired on May 12, culminating in the liquidation of more than $12 billion worth of futures long positions, and dampening the confidence of traders.

Its loyal but worried community has exhausted every angle of perspective, looking everywhere for trend reversal signs such as technical patterns, United States CPI inflation data, and Bitcoin exchange deposits, and is ultimately left asking one question – has bitcoin price bottomed yet?

As bleak as the situation is right now, two indicators, namely on-chain activity and derivatives data, suggest the worst is far from over for the leader of cryptocurrencies and a further downside is still looming around.

The $40,000 hope

In an attempt to provide equally, much-needed answers, some analysts stated that a higher high followed by a move above $40,000 will be enough to trigger the reversal. Bitcoin managed to move past the $40K mark, but that did not last for more than six hours, as no reversal happened.

Other traders also weighed in, saying a retest of the $30,000 low mark is required for the recovery everyone’s looking for. But despite logic being present in such a statement of hopes, the crypto market prices don’t always reach external news or previous chart information.

As opposed to stocks, investors in bitcoin don’t have the luxury to rely on “commonly used valuation multiples” or even comparables.

A long way up

At press time, according to CoinGecko, bitcoin is trading at $34,404 and is staring once again at a decline for the past day.

It is well below the $40,000 mark it needs to surpass in order to make a sizeable recovery, as some analysts say, but more importantly, almost half of its April all-time high of more than $64,800 has been wiped out from its value.

 

Image courtesy of Cointelegraph News/YouTube

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