Bitcoins [BTC] The chances of a near-term recovery look bleak thanks to…


Bitcoin is down again, and the slump just doesn’t seem to be stopping for the crypto centerpiece. He finished the last EIGHT weeks in losses and looks set to continue the rut. Maximalists have good reason to fear that their beloved Bitcoin will fall below the new support levels.

Help! Help!

Currently trading at $28,800, it’s only down about 1% in the past 24 hours. Given the lack of movement recently, Bitcoin should now end the week around the $29,000 area. Another worrying factor is volume, which is down almost 25% since yesterday.

The biggest cryptocurrency has seen extreme volatility this month with Terra’s de-peg shattering hopes of any recovery. Billions of dollars were wiped out of the crypto market after the crash, putting Bitcoin on the brink of a major meltdown.

Bitcoin survived but consolidated around the $29,000-$30,000 region. However, the metrics suggest there is still more to come with discouraging recent data. In a recent tweet from Glassnode, the NVT signal was recorded at a 4-year low of 233.9. The previous 4-year low was actually recently seen on May 25, further increasing the pressure on the Bitcoin community.

Source: Glassnode

Another tweet raised eyebrows in the crypto space, as Crypto Quant reported that there will be “2-3 months of annoying price action. Then last possible capitulation with 30% to 50% additional price reduction”. This emphasizes the bottom of the market explored by the Bitcoin price chart as it struggles to rally above the $30,000 level.

Source:: Crypto Quant/Twitter

Analyst Gives Hope to Bitcoin Maxes

Marion Labouré, an analyst at Deutsche Bank Research, said in a interview with CNBC that,

“Bitcoin’s value will continue to rise based on what people think it’s worth.”

Bitcoin is on a red chart much more often these days as it seeks to end a ninth string of losses. It is also less than half of its record value of around $68,000. But Laboure laid out four factors that will eventually help Bitcoin march towards victory lands.

Laboure gives four factors that can lead to a surge in Bitcoin prices. The first factor is the psychology behind bitcoin and cryptocurrencies which it calls the Tinkerbell effect. This means that the market sentiment towards Bitcoin will determine its growth in the future.

The second factor is demand and supply. With a fixed supply of 21 million coins, the demand for Bitcoin will eventually increase, causing prices to spike. The third factor is the most controversial: regulation. She also mentioned that she has reason to believe “regulation is coming,” which may pave the way for greater crypto adoption.

Finally, she points out that volatility is a determining factor in the growth of Bitcoin. Crypto markets have been plagued by volatility in recent years, with the Terra crash being the latest example. But with regulations and growing adoption, volatility may actually work in Bitcoin’s favor.

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