What Bitcoin’s “Horrible” Chart says, Just Lower prices or New Lows?
Nothing has changed since late September when BTC price dropped to $7,800 level. Bitcoin is still hovering around $8,000 and the trading volume is also stuck at $200 million.
However, Bitcoin detractors have taken this time to attack the leading cryptocurrency yet again.
Gold proponent, Peter Schiff took to Twitter to share how much “horrible” the Bitcoin chart looks currently. According to him the flag that followed the recent breakdown now projects a move to $6,000.
A call for a drop to $6,000 is not an odd one. Analysts and traders have talked about the possibility of a fall to $6k if the flagship cryptocurrency starts making its way downwards.
However, Schiff took a jump, left any technical or fundamental analyst behind and come up with his bias that projects BTC falling to $2k.
But, this didn’t go well with the crypto community.
If Peter had bought when he made some of his first public statements around Bitcoin and sold after his hypothetical collapse, he still would have profited 100x over 8 years. Not bad! https://t.co/jCCVAuWoFA pic.twitter.com/s5UYDQsLUD
— Michael Goldstein (@bitstein) October 19, 2019
“Imagine being someone like @PeterSchiff and actually knowing about the existence of Bitcoin when the price was $17.50… still being bearish at this point with the price being 450x higher and still not having done any basic research on the subject… SMH,” said Crypto OG WhalePanda.
According to trader and crypto investor, Josh Rager, Bitcoin isn’t going to new lows. The ongoing correction, he says is just a pullback after a 330% run up to $13,900. However, he did warn, “lower prices shouldn't surprise you.”
— Bitcoin Master (@drei4u) October 18, 2019
Bitcoin is forming a technical pattern that is called a rectangle, price breaking down with more velocity and strength than anticipated and then going sideways, which is a defined level of support and resistance, shared trader Jacob Canfield.
If Bitcoin breaks below the rectangle support, we can drop to $6,400, a level price dropped to in May this year.
On the 4 hour BTC chart, however, Bitcoin is forming a bullish pattern, he said.
The top of the rectangle is $8,600 and bottom $7,800 which are the invalidation levels for both bearish and bullish cases.
In an extreme case, the crypto market could very well be “slowly bleeding to death and drying up while exchanges, early adopters and devs made all the money,” an unpopular opinion shared by a technical analyst.
According to Fundstrat’s Tom Lee, “it’s possible.”
However, it is all but impossible.
From $5 before the first Bitcoin reward halving in 2012, we have now come to $8,000, though still down 58% from its all-time high of $20,000.
We are at about 6 months before May 2020 #bitcoin halving.
In 2012 btc jumped from $5 to $12 (2.3x) in those 6 months before the halving. In 2016 btc jumped from $350 to $650 (1.7x). pic.twitter.com/DKSQBOO2TD
— PlanB (@100trillionUSD) October 16, 2019
Now, we are getting ready for the third Bitcoin reward halving, scheduled for May 2020 that is expected to trigger the next bull run that is projected to take BTC price to six figures or even as high as a seven-figure price.