Experts fear bitcoin 2021 price continues fall and form the 'cross of death', although they anticipate a subsequent uptick of the cryptocurrency.

At the time of writing, according to CoinMarketCap, the price of bitcoin today stands at $ 34,249.61. It continues, therefore, to oscillate around 35,000, as in recent days. In the short term, some experts fear a further drop that could lead the cryptocurrency to form the so-called’ cross of death', something that happens when an intersection is formed between the line marking the moving average price of the last 50 days and that of the last 200 (with the first going down).

The opinion of various analysts is collected in Bloomberg. Among them, Mati Greenspan, founder of Quantum Economics, for whom the collision seems inevitable. And alert: "The cross of death would signal that prices are going to stay low for a while." Looking a little bit longer, however, Greenspan states that after the fateful intersection the ‘golden cross’ (the reverse pattern) usually comes: “If the price of bitcoin bottoms, it is likely that a strong rebound will follow.”

The last time the value of the cryptocurrency formed the 'cross of death', Bloomberg reports, was in March 2020 and this was followed by an interesting rise. In November 2019, however, the price went down another 5 % a month later.

Experts fear bitcoin 2021 price continues fall

The million dollar question, which a few dare to answer. Chartist analyses have long looked with fear at the $ 30,000 that the cryptocurrency already grazed in May 2021. If that barrier is broken, they estimate, the price of bitcoin could reach $ 20,000, since there would be a surge of bitcoin sales, since there is no technical support between $ 30,000 and $ 20,000. Edward Moya, of Oanda Corp, is one of those who point to this forecast, as are Evercore ISI and Tallbacken Capital Advisors LLC.

Experts fear bitcoin 2021 price continues fall: There are also members on the optimistic side. And in the head we must mention MicroStrategy, who already bought the fall in the price of bitcoin. Similarly, it has been news that El Salvador is the first country to adopt bitcoin as legal tender.

Experts fear bitcoin 2021 price continues fall

These 2 have been the most positive facts that have surrounded the cryptocurrency in recent times, although, seen what has been seen, it seems clear that on its fluctuation the negatives have weighed much more. Among them are Elon Musk's announcement that Tesla would no longer accept paying for its cars in bitcoin, arguing the environmental damage that mining entails; and also the growing regulatory pressure in China.

The US Government's bailout of the Colonial Pipeline, which has led to the recovery of more than $ 2 million in cryptocurrencies, has also not helped to improve the trend of bitcoin; in fact, it has caused many to doubt whether, in fact, cryptocurrencies are capable of escaping government control.

Experts fear bitcoin 2021 price continues fall

More news:

Bitcoin again surpasses $ 35,000 after El Salvador declares it legal tender and concerns about inflation persist

The price of the world's most popular cryptocurrency has risen again above $ 35,000 this Wednesday 9, driven by El Salvador's historic move to become the first country to establish bitcoin as a legal tender. Persistent inflationary pressures may also have encouraged investors to turn en masse to the asset, which some see as a hedge against inflation.

Bitcoin has risen to $ 35,349 (29,024 euros) by 8:14 a.m. ET (14:14 in Spain) on Wednesday, rising 12% from the previous day's intraday low. It has lost almost 50% of its value since reaching an all-time high of nearly $ 65,000 in April. At the publication of this article, bitcoin stands at 36,150 dollars(29,865 euros).

"This current market pause is not unexpected. Everyone needs time to evaluate and digest what the community has built, " says Paolo Ardoino, CTO (or chief technology officer) of Bitfinex, a cryptocurrency exchange. "I remain extremely optimistic in the long term about bitcoin and the fundamentals and long-term use cases of the technology," he adds.

Tim Frost, founder of the financial technology firm Yield, explains for his part that if bitcoin can exceed $ 38,000 (31,200 euros), this could signal an upward trend towards its medium-term average of around $ 47,000 (38,590 euros), and even potentially beyond.

The Congress of El Salvador has voted on Wednesday in favor of bitcoin becoming legal tender in the country, with the approval of President Nayib Bukele. Once the law goes through legislative processes, bitcoin will have the same status as the US dollar, the country's current national currency.

Then, the bitcoin will automatically and immediately convert into US dollars when using it.

Meanwhile, investors are waiting for US consumer price index data. UU. on Thursday, they are expected to show a faster rise in inflation than the April pace, which was already the highest reading since 2008. The European Central Bank will also meet on the same day.

Several economists, including those at Deutsche Bank, have claimed that inflation will reappear if the Federal Reserve clings to its current policy of keeping interest rates historically low.

"We expect inflationary pressures to re-emerge as the Federal Reserve continues its policy of patience," the bank's economists said on Monday. "It may take another year until 2023, but inflation will reappear," they said.