Bitcoins [BTC] Short-term chances of recovery look bleak thanks to…

Bitcoin is back on the bottom, and the tumble just doesn’t seem to stop for the crypto’s king coin. It ended the last EIGHT weeks in losses and seems to be continuing the rut. There is good reason for maximalists to fear their beloved bitcoin falling below new support levels.

May Day! May Day!

It is currently trading at $28,800 and is down only about 1% in the last 24 hours. Given the lack of movement lately, Bitcoin is now expected to end the week around the $29,000 zone. Volume is another worrying factor, down almost 25% since yesterday.

The largest cryptocurrency has endured extreme volatility this month, with Terra’s de-pegging diminishing hopes of a recovery. After the crash, billions were wiped out of the crypto market, bringing Bitcoin to the brink of a major collapse.

Bitcoin survived but consolidated around the $29,000-$30,000 region. However, the numbers suggest there is more to come given the recent disheartening data. In a recent Glassnode tweet, the NVT signal was recorded at its 4-year low of 233.9. Indeed, the previous 4-year low was recently observed on May 25th, 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 boring price action. Then final surrender possible with 30%-50% additional price reduction”. This underscores the market bottom explored by the Bitcoin price chart as it struggles to regain above $30,000.

Source: Crypto Quant/ Twitter

Analyst gives Bitcoin Maxis hope

Marion Labore, an analyst at Deutsche Bank Research, said in one interview with CNBC that

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

Bitcoin is much more likely to be on a red chart these days as it looks to end in losses for the ninth consecutive month. It is also less than half of its all-time high of around $68,000. But Labore identified four factors that will eventually help Bitcoin march to the lands of victory.

Labore names four factors that can lead to a price increase in bitcoin. The first factor is the psychology behind Bitcoin and cryptocurrencies, which she calls the Tinkerbell effect. This means that market sentiment towards Bitcoin will drive its future growth.

Around 55% of $BTC supply is still in profit

“2-3 months of boring price action. Then last possible capitulation with %30-%50 additional price drop.”
by @KriptoMevsimi

Read more👇https://t.co/BTolS8aBEt pic.twitter.com/GQcPojIzXC

— CryptoQuant.com (@cryptoquant_com) May 27, 2022

The second factor is supply and demand. With a firm supply of 21 million coins, the demand for bitcoin will eventually increase, leading to a price surge. The third factor is the most controversial: regulation. She also mentioned that she has reason to believe that “regulation is coming” that may pave the way for greater crypto adoption.

Finally, she points to volatility as a factor that drives Bitcoin growth. Crypto markets have been plagued by volatility in recent years, with the Terra crash being the most recent example. But with regulations and increasing adoption, volatility can actually play in Bitcoin’s favor.

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