2021 Promises A Choppy End for Bitcoin Bulls – Here Is Why
The volatility in the crypto market in recent weeks has been quite concerning for Bitcoin (BTC) bulls. Although the recent FOMC meeting by the US Fed led to a decent bump in BTC prices, overall, the trend has been quite bearish. We don’t expect this to change; in fact, 2021 could end on a choppy note, backing a bear trend that we have seen for nearly the whole of Q4. Here is why this will happen:
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Pandemic fears are still ripe with the massive spread of Omicron
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The supply chain crisis and inflation in the US and Europe remains high, which could threaten global economic recovery
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There is talk of potential regulation in many countries
Data Source: Tradingview.com
Bitcoin Price Analysis and Prediction
BTC saw a massive pullback this week. At the time of writing this post, the mega-cap coin was trading slightly above $45 000. It is nearly 30% down from its all-time high of slightly above $ 70 000. Also, the technical charts don’t offer a lot of promise, at least not until the year is out.
First, the price has already fallen below the 200-day exponential moving average. It is also very likely that in the coming days, BTC prices will test the 200-day simple moving average. We saw this type of trend in May 2021, and it took nearly 2 months for BTC to have some semblance of recovery. At this rate, it could be a very anxious time for BTC bulls out there.
Should You Buy Bitcoin
Bitcoin is the go-to crypto for any investor. Although it may seem like the recent pullback offers a nice dip to buy and ride the upward trend, it’s still early days. BTC could fall further before 2021 is out and some experts feel that the trend will continue into early 2022. So, it is best to wait for now.
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Motiur Rahman, Khareem Sudlow