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Bitcoin $20,000 price warning as investor anxiety surges

By Adrian Holliday

07:00, 9 June 2021

Bitcoin price chart photo

A fresh wave of Bitcoin valuation anxiety is pointing, some say, to new price floor concerns – possibly as low as $20,000. Bitcoin’s value dropped sharply away in the second week of May.

Some chart watchers are suggesting a pattern of lower price points could indicate a ‘death cross’ scenario. Bitcoin’s average price over the last 50 days is now nearing the 200-day average. New bearish valuations have emerged too from Edward Moya, a market analyst at global currency solutions company Oanda.

According to some reports, Moya believes that the world’s biggest digital currency is “dangerously approaching the $30,000 level” and, he adds, “a break of $30,000 could see a tremendous wave of momentum selling”.

“Absolute carnage” warning

One watcher, Cobra Crypto, has already warned of “absolute carnage within next 5 days” though Cobra Crypto claimed he would “scale back in” at prices below $28,000.

However the pessimism is balanced again by fresh buying from Bitcoin ‘bulls’, including Michael Saylor’s MicroStrategy. Saylor’s company has increased the size of a $500m junk-bond sale in order to buy more Bitcoin.

XLM/USD

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BTC/USD

97,887.45 Price
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Short position overnight fee 0.0137%
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Spread 106.00

Meanwhile Republican SEC commissioner Hester Peirce has told the FT she is concerned about moves by US regulators to rein in the cryptocurrency market.

The US Securities and Exchange Commission is looking at tying the cryptoasset market closer to other financial asset governance standards, a move being led by SEC chairman Gary Gensler.   

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SEC regulation worry rises

“I am concerned that the initial reaction of a regulator is always to say, ‘I want to grab hold of this and make it like the markets I already regulate’,” Peirce told the FT. “I am not sure that’s going to be great for innovation.”

In May the US Treasury Department said it would require any cryptocurrency transfers worth $10,000 or above to be reported to US tax authorities. Meanwhile El Salvador has become the first country in the world to accept Bitcoin as legal tender, approved by the Salvadoran Congress earlier today by 62 out of 84 votes.

Read more: El Salvador prepares to make bitcoin legal tender – why?

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