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Bitcoin investors have recently experienced a rough 24 hours. After a few weeks Bitcoin moving more or less to the side, Bitcoin broke below $ 30,000 for the first time in a month. This downward movement cost the flagship cryptocurrency most of the gains it made during the 2021 bull rally.
And as usual, many people felt the need to comment on this fall. One of them was an economist Nouriel Roubini, nicknamed Dr. Doom for his very accurate forecast of the financial crisis in 2008. He went on Twitter to warn investors that Bitcoin is waiting for a much deeper decline after breaking $ 30,000.
Dr. Doom: Bitcoin is on thin ice
Despite the fact that the price of BTC reached just below USD 65,000 in mid-April, its price is now basically back where it was before the start of the parabolic phase of this year’s bull market. And Roubini, who has been predicting the impending destruction of bitcoins at least since 2015, did not express his chances of a negative opinion of BTC.
He noted that with the price of Bitcoin below $ 30,000, all small investors who entered the market after March 2021 are at a loss. At the same time, he added that current fundamentals suggest that the “sleeping” cryptocurrency is on the verge of an even deeper fall.
For this bitcoin sadist, the main question now remains: Will he save Tether thanks to “pump and dump schématům“This greatest cryptocurrency from the apocalyptic ruin, as it has been in the past?
Bitcoin price is now below 30K. A critical level – meaning the majority of retail suckers, who entered into the market after March 2021, are in the red. Fundamentally it should go much lower. Only issue: will Tether pump and pump & dump schemes now prop it up as in past episodes?
– Nouriel Roubini (@Nouriel) July 20, 2021
At the beginning of January, the price of BTC fell sharply from $ 34,000 to $ 28,700 after losing more than 16% of its value in 24 hours. A quick rebound followed, bringing the prize back above $ 31,000. At the time, Roubini described Bitcoin as a “total irrational bubble to a pseudo-asset” with no real value. He added that the rebound occurred when “the full fiat press of Tether was resumed and active manipulation of BTC began.”
BTC’s short-term outlook is tricky
Edward Moya, chief market analyst at Oanda, noted that concerns about the recent dramatic increase in the Delta COVID-19 triggered panic sales across major assets, with bitcoins currently being “the highest risk asset”.
Moya predicts that the price of BTC could fall toward the $ 28,900 zone after breaking $ 30,000 in support.
“This could be a line to defend against a deeper decline to $ 25,000.”
A similar view is shared by the founder of the investment company Kenetic Capital, Jehan Chu, who indicated in a recent interview that “all signals are red, as BTC continues to be affected by the final ban on cryptocurrencies in China and deteriorating macroeconomic conditions due to the sharp rise in new COVID options “
Conclusion
If I take it around and around, there are really enough bearish indicators here, but it’s hard to estimate how long the currently declining BTC trend will last. Many voices expect that the price of Bitcoin could start to rise with the end of the holidays, so we’ll see. In the long run, I’m still bullish.
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