Notorious gold and bitcoin bear Peter Schiff has said he believes the Bitcoin trend could strengthen, pointing to a critical support level that bitcoin investors should not overlook. If broken, his chart suggests that digital gold could lose up to 60% of its value.
Right now, Bitcoin’s price is just below the 200 EMA. This level has always been a reliable stop for the long-term trend, which makes it significant. A break below this level could signal a more serious bearish trend and a significant price drop. The bearish outlook has been reinforced by resistance at the 50 EMA, which is at $63,634, and the 100 EMA, which is at $63,315.
While the overall trend remains weak, the RSI at 31 suggests Bitcoin is approaching oversold territory, suggesting a possible short-term recovery. Peter Schiff’s Bitcoin analysis often leans heavily toward the bearish extremes, despite being based on traditional market skepticism.
If Bitcoin were to break through its current support, a forecast of, say, 60% of the price could be considered alarmist. A 60% decline would mean a drop to around $23,000, which may not be consistent with previous price patterns, although further drops are still possible. Despite these drops, Bitcoin has shown some resilience, but apparently not enough.
As a result of adoption trends and optimistic investor sentiment, Bitcoin has recovered from similar declines in the past. Despite the recent declines, institutional interest in Bitcoin has not diminished.
Institutions continue to support Bitcoin by investing in the cryptocurrency and developing products around it, indicating their confidence in its long-term potential. Market sentiment is subject to sudden changes. Positive news can quickly change the narrative and lead to increased spending. Clearer regulations or improved technology are two examples of this.
