Justin Spittler, chief trader at leading financial risk advisory company RiskHedge, is certain that Bitcoin has yet to bottom out. 

Earlier this Friday, the flagship cryptocurrency slipped to an intraday low of $114,518 before regaining some ground. However, it is still trading near the lows of the day, currently sitting at $115,692.

The substantial correction comes less than two weeks after the top cryptocurrency hit its current all-time high of $123,236 on July 14. 

Spittler thinks that Bitcoin bulls should prepare for "a bit more pain" in the short term. 

The chartist does not rule out that Bitcoin might end up retesting the $113,000 level, and he believes the target might "overshoot a little" to the downside. 

Deep retracement not in cards

At the same time, Spittler is convinced that "a deep retracement" is not in the cards for the near future, given how recent the breakout was.  

Moreover, alternative cryptocurrencies have shown some strength during the latest correction, which indicates that there is still some risk appetite left. 

A similar point was recently made by Chris Burniske, a partner at Placeholder, who argues that there is "not much fear" in the market based on the rather impressive performance of altcoins during the most recent correction. 

The ETH/BTC pair is up by nearly 1% on Friday, with the chief altcoin surpassing the $3,700 level earlier today. 

Bitcoin open interest hits new high 

At the same time, Bitcoin's open interest (OI), which shows the total number of outstanding derivatives contracts, has reached a record high of $44.5 billion. This could indicate that another significant move could happen soon, given that such spikes in OI tend to be followed by high volatility.