Has Bitcoin Found The Bottom At $29,000?

Bitcoin BTC/USD traded above the $33,000 level on Tuesday night after touching a low of $28,893.62 on an intraday basis. Analysts are of the view that the apex cryptocurrency may have more pain in store for investors as it may not have found a bottom around the $29,000 mark.

Looming Summer Of Discontent: The recent turmoil in the cryptocurrency market was fueled by China and its crackdown on Bitcoin miners. Additional pressures came in from Grayscale unlocking schedule and selling by newcomers, as per ExoAlpha partner Élie Le Rest, reported Cointelegraph.

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La Rest theorized that Bitcoin prices could be rangebound between $25,000 to $35,000 in July and low volumes in August holding potential to “accelerate this downside trend or build the upside trend.”

Institutional Caprice: Total open interest in the BTC futures market stands at $11.3 billion, a decline of 59% from the April 13 peak of $27.3 billion, as per Arcane Research data, reported CoinDesk.

The report by Arcane said that institutional investors are being “cautious” at the moment and noted that the three-month futures in BTC are in backwardation — which means they are being traded at a discount to current spot prices, as per CoinDesk.

Open interest on the Chicago Mercantile Exchange (CME) is currently at 12.2% of the Bitcoin futures market, as per Arcane. Open interest on the CME as a share of the total bitcoin futures was rising at the end of May but now has taken a downwards turn.

Paging Mr. Musk: David Lifchitz, the chief investment officer of ExoAlpha, said that BTC seems to have drawn “the line in sand” at $29,000 and Ethereum ETH/USD at $1,700, but even he warns against abandoning prudence but did playfully call out for the intervention of Tesla Inc TSLA CEO Elon Musk.

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“It's too early to tell if this is 'the' bottom or just a temporary floor before more downside. The lack of any upside catalyst (besides some contrarian oversold metrics) remains the biggest hurdle for cryptos to bounce back... Paging Mr.Musk, paging Mr.Musk,” said Lifchitz, as per Cointelegraph.

BTC traded 3.78% higher at $33,812.33 at press time over 24 hours, while ETH traded 2.43% higher at $1,996.72.

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