Bloomberg: Bitcoin is facing a ‘go to zero’ moment

According to technical analysis by Bloomberg, Bitcoin is facing a “go-to-zero” moment after the recent sell-off. While the digital currency has rebounded above its 100-day average, it is still trading below its 50-day moving average. This movement often shows that Bitcoin is approaching the pivotal moment.

If Bitcoin fails to break out of the 50-day moving average (currently around $ 57,000), the coin could be in a period of volatility as the two lines depicting this trend are narrowing the gap. These technical indicators suggest a breakout will not be easy to achieve, as Bitcoin took such a positive run last week.

Movements of the world’s largest digital currency have been “more troubled” in recent days, after reaching a record high in mid-April of over $ 64,000. Since then, Bitcoin has rebounded and received positive signals, including reiterating Tesla’s CFO’s commitment to the digital currency.

Bitcoin’s 50-day and 100-day moving averages.

David Tawil, president of ProChain Capital, said: “The sharp decline is definitely a downside point. In the end, however, I think the recovery and steady development are a good sign. The real potential of this digital currency, along with the ability to stabilize this asset class. ”

Following the SEC’s announcement to delay its decision to allow a Bitcoin ETF to run, the world’s largest digital currency fell 1.4% yesterday. Currently, Bitcoin is trading at around $ 54,294.82.

Sam Stovall, chief investment strategist at CFRA Research, said that if the stock market continues to climb, he predicts Bitcoin will continue that trend.

Despite the recent fluctuations, Bitcoin is still up 511% in the past year. According to Quant Insight, inflation and central bank policies are the biggest drivers for Bitcoin in the past 12 months. This research firm based in London, specializes in learning about the relationship between assets and macro factors.

While there is controversy over whether Bitcoin has the potential to become an inflationary “barrier”, this argument is the main reason for the momentum that drives up the price momentum and many fans agree with the view. this. Bitcoin’s fan group claims that the central bank’s massively printing money has made the coin an efficient store of assets. This is an explanation that has attracted attention in recent months, especially in the context that economists expect inflation to rise.

Chuck Cumello, chairman and CEO of Essex Financial Services, said: “It is clear that the driving factor behind Bitcoin’s excitement is the huge amount of money that has been and will be printed, along with the notion that we can’t have that much money in the system. ”