Bitcoin traders find themselves pulling hair, horrified by crypto events of the past few sessions. This time around, the unpleasant price action and unsavory BTC bears are indeed spoiling the fun.
After six months of stellar Bitcoin gains, the bubble is bursting—it appears.
So, which way now? Applications to McDonald’s or we HODL and buy Lambos later?
To zero or to hero and $100k?
Incessant Bitcoin FUD
We know that it needs some giant “diamond hands” to weather the current storm–a deluge of relentless FUDs from almost all quarters.
As such, it is no surprise to see traders with all sorts of roller-coaster emotions split on what to do next.
The situation is not made easy on social media either.
For one, yes, Bitcoin is under immense pressure and could crater—who knows? The path to $20k, $10k, or $0 may be on the offing—judging skepticism from a section of traders.
Indeed, the Chinese FUD count for something.
Miners play a critical role in the crypto and Bitcoin ecosystem. It may pain in the short term, but in the long haul, the resulting geographical distribution breed resilience and, therefore, robustness cementing Bitcoin’s position as an internet native, a preferred means of transferring value across jurisdictions.
The upside potential of Bitcoin, considering its fixed supply and adoption, is limitless.
However, in the meantime, the pressure to the downside would likely break weak traders, only turning a few HODLers to diamonds.
If push comes to shove and Bitcoin collapses from spot rates, how deep will this crevice be?
We sample comments from observers, highlighting their quotes to gauge the depth of the correction.
Bitcoin Will Fall to $3k
One trader on Twitter says Bitcoin can fall to $3k—and “he’s keeping his analysis simple” as a messenger.
And history backs his case.
The analyst @hiddensmallalts notes that back in the crypto winter of 2018, few people expected BTC/USD prices to fall below $10k.
— Humbled Speculator (@hiddensmallalts) June 21, 2021
The “psychological” support was nonetheless discouragingly broken, and BTC/USD crumbled to $6k.
A few weeks later, the coin sunk to $3.2k in December 2018 before bottoming up to around $13.6k by June 2019.
The same script is panning out, judging at the current BTC/USD price action.
Momentarily on June 22, the price of Bitcoin fell below $30k for the first time since January 2021 before recovering.
— MMCrypto (@MMCrypto) June 22, 2021
Bitcoin is “Over-Inflated,” The “Neck” Will Break
While some traders think BTC won’t fall to $10k in their “lifetime,” the analyst reminds them of how Bitcoin price action has been brutal in the past.
While one expects BTC/USD to sink to as low as $3k, another is comparing Troy Polamalu’s hair with the state of Bitcoin.
He poses a riddle of which the answer relates Troy’s hairball with Bitcoin, both of which are inflated.
Then again, the answer could relate to the famous Head-and-Shoulder pattern.
— Michael Burry Archive (@BurryArchive) June 20, 2021
Subjective as it may, Bitcoin—critics claim—is propped by USDT—a stablecoin whose issuer recently settled with the NYDFS for $24 million.
If then Bitcoin is now deflating after being popped, subsequent price action may be unforgiving for HODLers.
Back to zero as Bitcoin’s neck is broken? Is this the end of Bitcoin’s fairy-tale ride?
Peter Schiff, a Bitcoin critic, has a damning conclusion:
The most ominous thing about #Bitcoin's head and shoulders top pattern is that with a head near $65K and a neckline around $30K the pattern measures a move to zero. That's because the pattern projects a move below the next line that equals the move from the neckline to the head.
— Peter Schiff (@PeterSchiff) June 22, 2021
The Dreaded Bitcoin “Death Cross”
This is turning to another horror show now that the dreaded “Death Cross” has formed on the BTC/USD daily chart.
Death cross confirmed. pic.twitter.com/1mStiQ1VGe
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) June 21, 2021
It is only three days in, and the market is already down over 6K from June 19.
This technical pattern prints to signal a shift in trend and momentum, happening when the 50-day moving average crosses below the 200-day moving average.
Death Cross 📚
The heavily discussed MA 50 vs MA 200 Death Cross and why it is not what they are trying to sell you
▪️ What is it supposed to be?
▪️ Is it really a sell signal?
▪️ What truly happens?
▪️ The takeaways from Death Cross?
— J A C K I S (@jackis_trader) June 19, 2021
If this is the case and sellers are indeed in correction, it might be doom and gloom—a state at which even the most ambitious Bitcoin traders won’t deny that the uptrend is over and $30k support is clutching on straws.
It very much opens the possibility of another painful slump towards $20k, destroying bulls.
The death cross on Bitcoin has occurred!
If history repeats itself we could be in for some consolidation the next 1-2 months and then sell-offs down to around $20,000 for the next 6-9 months afterwards.
— Sam Elfarra (@melfarra123) June 19, 2021
Bitcoin Is the Worst Performing Asset in 2021
Explaining why some traders—even influencers—are salty about Bitcoin’s performance thus far.
With hindsight, they make a comparison with other high-performing altcoins, especially in DeFi.
Here, Bitcoin has been thrashed, making the supposed “store-of-value” asset one of the worse performing assets in 2021—in their view.
There’s a high possibility we see a major bounce in alt coins after Bitcoin is done shitting itself. #AltSeason2021
Bitcoin is one of the worst performing cryptos of 2021, and many of its holders are in pain holding it. My guess is they will dump it, and jump into alts soon.
— Mr. Whale (@CryptoWhale) June 21, 2021
Considering the dicey situation Bitcoin finds itself in, the best course of action, they reckon, is to dump the coin and opt for altcoins—which may recover after May and June obliteration.
Bitcoin Sentiment Indicator Is Not Even “Bearish”
Even in the current disemboweling of bulls, traders are not as fearful—reading from the Bitcoin sentiment indicator.
As such, there might be room for bears to squeeze out further any form of upside momentum from optimistic Bitcoin bulls.
Crypto Market Sentiment is 32 — Bearish pic.twitter.com/D05Q1pfb4C
— Dump Index for Cryptocurrencies (@CryptoDumpIndex) June 22, 2021
Combining the same with the Wyckoff indicator, buying Bitcoin at spot rates is akin to trying to catch a falling knife.
— Tookie Knows (@crypto_tookie) June 20, 2021
The pressure to the downside is insurmountable, leaving no chance for bulls.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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