As the price of Bitcoin (BTC) is attempting to establish support at $37,000 on 25th May, the cryptocurrency’s recent $30,000 price correction might have been its bottom, according to a derivatives market indicator that had previously predicted BTC/USD cyclical lows accurately. Bitcoin’s Recent $30,000 Price Drop Might Have Been the Bottom Following Bitcoin’s massive price correction, the digital asset might get some respite after all, according to a derivatives market indicator that suggests the digital asset’s recent $30,000 might have been the bottom. Interestingly the indicator had previously predicted Bitcoin’s bottom on November 1, following the cryptocurrency surging from $13,o00 as high as $64,899. Dubbed as “rolling basis,” the indicator mathematically represents the relative difference between the price of the futures contract and the spot rate on an annual timeframe. Historically, there has been several instances wherein the rolling basis reading fell below 1% during Bitcoin’s downside in the spot market. When this happens, the cryptocurrency goes through a rebound rally, i.e. a new bullish cycle appears before correcting all over again to find a new bottom just as the rolling basis slips below 1%. Bitcoin Struggling to Retrace Losses from its ATH Currently, Bitcoin is attempting to find support at $37,000, roughly 40% below from its all-time high. The digital asset did rally towards the $40,000 level as the cryptocurrency market tried to recover some of the ground lost in this month’s massive market crash. Amid the volatility, regulatory scrutiny, and debates circulating around Bitcoin’s environmental concerns, retail investors are hesitating towards investing in digital asset token over the long term. The leading cryptocurrency is just about $25,000 shy of its mid-April record of almost $65,000 while the cryptocurrency market has wiped out of some $800 billion to $1.76 trillion from its May peak. Despite the negative media frenzy, the digital token did manage to climb to $40,800 today while the second largest cryptocurrency Ether also gained.
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