Investors are being advised that Bitcoin is going to fall even further by the well-known crypto analyst
Crypto is undergoing a historic bout of volatility, but options traders are seeing positive signs within the market in the wake of the ruckus and controversy that overtook digital-asset lenders and others in the sector. Bitcoin price recovery over the last two days is primarily due to a push from buyers looking to own the cryptocurrency at a cheaper price. However, BTC trading charts show it is still on a downward slope. As cryptocurrencies reel under the global downturn, Chinese state-run newspaper Economic Daily has warned investors that the price of leading cryptocurrency Bitcoin is “heading to zero”. The warning came as the cryptocurrency market continued to face a meltdown with Bitcoin hovering around US$21,000 per digital coin on Saturday a substantial drop from its record high of US$68,000 in November last year. “Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” the newspaper said.
Bitcoin has undergone some turbulent times over the past couple of weeks. Currently, there are several speculations about the future prospects of crypto, but unfortunately, most of them are not even close to being positive. From reaching all-time new highs back in November 2021 to disintegrating into unbelievably low market value, Bitcoin has made the crypto market extremely volatile, and at a time when it could have shown its true potential as an inflation hedge and a valuable store of asset amid economic downturns. Experts say that these economic downturns are some of the most significant reasons why BTC and most other cryptocurrencies are plummeting. The market participants are in shock and might even get trampled on despite the following the suggestions and strategies recommended by crypto big shots. Recently, new reports have got investors to run away from BTC for their lives! Experts believe if the BTC price fails to achieve its 200-week moving average, then the token might experience macro price bottoms.
Bitcoin will Not Recover?
“Long-term Bitcoin #HOLDers aren’t worried as they’ve been through 73% declines before. But previous declines didn’t involve anywhere near the total market cap lost during this decline, nor did they involve massive leverage. This crash is just beginning. #Bitcoin will not recover,” Schiff tweeted on 18th June. “Don’t get excited about #Bitcoin is back above US$20K. 20 is the new 30. This is just another bull trap. Nothing drops in a straight line. In fact, this slow-motion crash has been extremely orderly. No sign yet of any capitulation that typically forms a bear market bottom,” Schiff tweeted again on 20th June.
Market Relevance of Bitcoin
For the past several weeks, Bitcoin’s price has been declining at a rapid pace, taking down the hoard of other cryptocurrencies in the market. BTC’s present price movements were already questionable by the investors, who were or are already planning to sell off their investments. Even Bitcoin whales have concluded that the falling prices of the crypto demonstrate that it is impossible for the token to regain its lost market value. As investors continue to remain on edge due to all the negative headlines based on cryptocurrencies and the rising inflation, they are also not backing down on utilizing this opportunity to buy the dip. It surely might enhance the market relevance of Bitcoin to new highs once again. But eventually, all these efforts will go in vain if BTC fails to achieve its 200-MA and might eventually trigger a new recorded series of bearish price trends.
This month has been quite the journey for the cryptocurrency market as major cryptocurrencies were hit by bearish waves. A number of crypto organizations, including 3AC and Celsius, failed as a result of the global crypto market capitalization dropping below US$1 trillion. During that time, Bitcoin also experienced significant setbacks. Although BTC is trading calmly above US$20,000, its direction is not clear yet.
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