It has been a rough 24 hours for bitcoin investors. After trading sideways for a couple of weeks, bitcoin finally broke below the $30,000 support region for the first time in a month on Tuesday. The downward move has inadvertently cost the flagship cryptocurrency majority of the gains it had accumulated during the 2021 bull rally.
Economist Nouriel Roubini — nicknamed Dr. Doom for accurately predicting the 2008 financial crisis — took to Twitter on Monday to warn investors that Bitcoin is headed for deeper price declines after dropping below $30K.
Bitcoin Sits On Thin Ice: Dr. Doom
Despite peaking just below $65,000 in mid-April, bitcoin is essentially back to where it was before the parabolic phase of this year’s bull market started. And Roubini — who has been predicting bitcoin’s impending doom since at least 2015 — did not pass up the chance to gloat that with BTC price moving below $30K, all retail investors that entered the market after March 2021 have incurred losses.
For the bitcoin sadist, the main question now is: will Tether’s “pump and dump schemes” save the top-ranked cryptocurrency from an apocalyptic crash as they have previously done?
Earlier in January, bitcoin’s price took a dive from $34,000 to around $28,700 after shedding over 16% of its value within 24 hours. A quick bounce ensued that took the price back above $31K. At the time, Roubini described bitcoin as a “total irrational bubble on a pseudo asset” with no intrinsic value. He added that the bounce back surfaced when “fiat currency printing of Tether resumed in full scale & active manipulation of BTC started.”
Bitcoin’s Short-Term Outlook Looks Dicey
Edward Moya, senior market analyst at Oanda has observed that concerns of the recent dramatic surge in the Delta variant of COVID-19 cases have triggered panic selling across major assets, with bitcoin being “the ultimate risky asset” at the moment.
Moya proposed that bitcoin could fall towards the $28,900 zone once the $30K support level is broken. “That could be the line in the sand for defending a deeper plunge toward the $25,000”, he explained.
Moreover, the founder of VC investment firm Kenetic Capital, Jehan Chu, also indicated during a CNBC interview that “all signals are red as BTC continues to be weighed down by China’s ultimate crypto ban and worsening macroeconomic conditions from a surge in COVID variants.”
With all these bearish indicators, how long the current downward bitcoin trend continues is anyone’s guess.
Read More: zycrypto.com