BTC investors have recently experienced a rough day. After BTC moved more or less to the side for a few weeks, BTC 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 run.
And as usual, many people felt the need to comment on this fall. One of them was the economist Nouriel Roubini, nicknamed Dr. Doom for its very accurate forecast of the financial crisis in 2008. He went on Twitter to warn investors that BTC is waiting for a much deeper decline after breaking $ 30,000.
Dr. Doom: BTC 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 bitcoin at least since 2015, did not express his chances of a negative opinion of BTC.
He noted that with the price of BTC 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 BTC sadist, the main question now remains: Will Tether save this greatest cryptocurrency from the apocalyptic crash through “pump and dump schemes”, as it was in the past?
BTC 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 BTC 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 variant of the COVID-19 case have sparked 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 the $ 30,000 support is broken.
“This could be a line to defend against a deeper decline to $ 25,000.”
A similar view is shared by Kenetic Capital founder Jehan Chu, who in a recent interview suggested that “all signals are red as BTC continues to be affected by China’s final cryptocurrency ban and deteriorating macroeconomic conditions due to a sharp rise in new COVID variants.”
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 BTC could start to rise with the end of the holidays, so we’ll see. In the long run, I’m still bullish.
