Bitcoin (BTC) deepened its correction to $7,600, wiping out close to $600 within a day. The fall was expected, as November saw diminished enthusiasm for trading.
Gold Bug Schiff Clings to $2,000-$1,000 prediction
Peter Schiff, gold bug and traditional investor advisor, sees an ominous picture in the current slide. Without a relief rally closer to $9,000, bitcoin may continue downward to as low as $1,000, based on Schiff’s most pessimistic prediction.
#Bitcoin is nearing the neckline of the head-and-shoulders top I pointed out before the Oct 25th 40% pump. The right shoulder is now shrugged and the neckline slanted and parallel to the shoulders. If it breaks the price objective for the dump is $1,000 to complete the pattern.
— Peter Schiff (@PeterSchiff) November 21, 2019
However, bitcoin still has a chance to remain unpredictable, as many traders remarked on the macro head-and-shoulders pattern as ‘reading too much into the chart’.
BTC remains clearly bearish, though more signs of capitulation from miners and traders are expected. The recent slide is a sell-off parking some of the gains into Tether (USDT), while waiting out for a reversal. The sell-off is currently hinging on 77% of volumes in the BTC/USDT pair.
Schiff, however, believes no such reversal is on the cards, and expects bitcoin to continue south towards a new year-low. A dip to $1,000 might seem realistic when you’re a prominent anti-bitcoin advocate, but with the halving next year and a bull market expected shortly after, it’s highly unlikely that traders would let the asset drop to such low levels.
BTC is now up less than 100% net for 2019, though still more than 100% above the lows from December 2018.
The BTC fear and greed index is still away from “extreme fear”, which was last seen during the September sell-off. But now, BTC has almost wiped out its monthly gains, and erased almost all of the 42% climb green candle that recovered prices above $10,000 at the start of the month.
Since then, BTC has not seen any bullish news of adoption, and trading enthusiasm subsided again. Added to this were indicators of small miners leaving the fray and selling some of their rewards. Along those lines, BTC moves with the new narrative that the halving event may not lead to an immediate rally.
Bitcoin Bulls Optimistic for Longer Run
A price crash piled bulls and bears against each other, as BTC maximalists now switch to holding onto the asset with a longer-term outlook.
Many bitcoiners are always bullish. This isn't irrational blindness; it's a long-term mindset plus an appreciation for how asymmetric the situation is. And the asymmetry has been present through bitcoin's entire history so far (yes, even at $20k).
— Dan McArdle (@robustus) November 21, 2019
But in the short term, there are enough bearish traders to bring bitcoin price down significantly. BTC struggled between $8,000 and $8,200 for hours on Wednesday, only to fall through to the lower tier a few hours afterward, when US markets opened.
In the longer run, some investors see bitcoin as cyclical and the current slide as a buying opportunity.
https://twitter.com/forexfukuoka/status/1197341850333376512
BTC saw lower social media noise in the past months, so Schiff’s statements have stood out. But even now, they are met with skepticism as the crypto community remains confidently bullish long-term.
What do you think about Peter Schiff’s prediction? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @PeterSchiff @robustus @forexfukuoka