Bitcoin slid Monday to its lowest point in the past seven days, with traders saying bearish signals are appearing after the cryptocurrency’s 30 percent rebound from a market bottom in mid-March.
After recovering from the depths of the coronavirus-induced sell-off, bitcoin repeatedly failed to break above a price of $7,400.
Bitcoin (BTC) prices fell Monday by 1.6 percent to 20:45 UTC (4:45 p.m. EDT) while ether fell 1.8 percent.
Most major digital assets were down on the day. Bitcoin cash (BCH) was down 4.8 percent, EOS (EOS) dipped 2.6 percent and bitcoin sv (BSV) lost 1.9 percent. All price changes are from 0:00 UTC.
Bitcoin futures contracts for June on exchanges such as Kraken are trading around $6,750, which suggests traders are pricing in further downside. Such “backwardation” — where futures trade at a discount to the spot price — represents a shift from last week, when futures were trading at a premium.
“Futures and our own activity indicate that speculators expect to see lower prices in the short term,” said Maxine Boonen, CEO of over-the-counter (OTC) bitcoin liquidity provider B2C2. “One particular hedge fund sold us $20 million of bitcoin today and they have usually been right.”