Famed Bitcoin critic bets on cryptocurrency’s downfall once again
One of the most famous Bitcoin critics, Peter Schiff, has once again predicted the crash of digital gold. But this time the reason lies in the technical conditions of the cryptocurrency. According to the chart shared by Schiff, Bitcoin has formed a strong bearish pattern called “Double Top.”
Schiff bets on $10,000
As the president of SchiffGold suggests, Bitcoin’s fall below $30,000 will almost immediately launch the cryptocurrency to $10,000 since there is nothing on the long-term chart to protect Bitcoin from falling into the aforementioned support zone.
But while the economist predicts a fall to extreme lows, he still thinks that Bitcoin has a long way to fall and may even reach the absolute low and lose all of its value gained during the year.
Schiff’s analysis is based on the widely known technical pattern called “Double Top”, which quite often marks the top of a bullish rally and is considered complete when a price breaks below the “neck line” that currently remains at around $30,000.
How accurate is Schiff’s prediction?
According to the weekly Bitcoin chart, the double top pattern is not as accurate as it should be. In addition to low accuracy, the formation itself does not seem to look finished as Bitcoin has successfully bounced from $35,000 and reached $45,000 recently.
Despite the reversal and plunge to $42,000, the double top pattern on the weekly Bitcoin chart could already be considered flawed. Previously, Peter Brandt noticed that cryptocurrency was forming another head and shoulders pattern.
At press time, Bitcoin is trading at $42,100 due to losing 8% of its value three days ago.
