Bitcoin (BTC) has been operating within a narrow trading range of around $ 8,000 over the past week and has failed to generate significant momentum in any direction that illuminates its short-term trend.
A prominent gold bull and an open Bitcoin critic now point out that multiple technical formations point to the possibility that the cryptocurrency currently positioned for a move towards $ 2,000. But crypto-centric analysts are disputing their analysis, claiming to ignore the Important factors that drive the BTC price action.
Bitcoin continues to consolidate, but a significant downward movement may be imminent
At the time of writing, Bitcoin is trading slightly at its current price of $8,040. Which marks a slight recovery from its recent lows of $ 7,900. That established overnight during a fleeting downward movement that quickly bought by BTC bulls.
Peter Schiff, a prominent gold bull and frequent critic of Bitcoin and other cryptocurrencies, explained in a recent tweet. That he believes his recent downward flag breaks below $10,000, and a potential head and shoulders could be pointing to a move towards $2,000.
“The Bitcoin chart looks horrible. Not only does the flag that followed the recent breakdown project a $6K move. But we are close to completing the right shoulder of a head and shoulders up. With a $14K head and neckline just below $8K. Which he plans to collapse at less than $2K, ”he said in a recent tweet.
A fall towards $2,000 seems to be highly unlikely, except for some kind of terrible fundamental change for Bitcoin or aggregate crypto markets. Although some analysts believe that cryptography is positioned for a downward move to $6,000 before finding significant support.
Analyst: Schiff's TA patterns have little influence
It is important to keep in mind that analysts do not believe that the patterns Schiff refers to in support of his idea. That Bitcoin will fall to $ 2,000 does not offer any meaningful insight into future price action.
"Imagine believing that you can actually predict the price of Bitcoin in high time frame charts using H&S patterns," said Josh Rager. A leading cryptocurrency analyst on Twitter, in a recent tweet, referring to Schiff's analysis.
Although analysts are divided on whether or not Bitcoin will visit $6,000, even bearish analysts believe that. This will be a region of significant support. That drives it higher and it is very unlikely that a fall below this level will be imminent.
[…] region of $ 7,000 has proven to be a strong level of support over the past few days and weeks, but BTC bulls have failed to publish any notable extension of the upward momentum that is incurred with […]
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