After incurring a significant influx of selling pressure yesterday, Bitcoin has so far been unable to post any type of relief rally and is currently trading just a hair above its recently established multi-month lows.
Critics of Bitcoin have celebrated the recent drop, as they believe that it is emblematic of the cryptocurrency’s current technical weakness, with one prominent critic claiming that he believes BTC will target $4,000 next.
Peter Schiff: Bitcoin to Target $4,000 Next
At the time of writing, Bitcoin is trading down over 10% at its current price of $8,410, which marks a massive drop from its recent highs of over $10,000.
This tremendous drop was the result of a massive descending triangle formation that BTC has been trading within for the past several months, which was commonly thought to be a bearish formation, although multiple analysts pointed to a few other developments as reasons why the descending triangle could have led to an upwards break.
It is important to note that Bitcoin’s inability to surge from its recent lows does point to underlying weakness, as drops of this magnitude are typically followed by small relief rallies.
Peter Schiff, an outspoken critic of Bitcoin and a prominent Gold bull, spoke about BTC’s recent drop in a tweet, explaining that he believes the technical weakness caused by this dip will send the crypto as low as $4,000 in the near-future, which would mark a full retrace of the gains incurred throughout the first half of 2019.
“#Bitcoin has finally broken below the support line of the large descending triangle it has been carving out for months. This is a very a bearish technical pattern, and it confirms that a major top has been established. The risk is high for a rapid decent down to $4,000 or lower,” he explained in a recent tweet.
#Bitcoin has finally broken below the support line of the large descending triangle it has been carving out for months. This is a very a bearish technical pattern, and it confirms that a major top has been established. The risk is high for a rapid decent down to $4,000 or lower!
— Peter Schiff (@PeterSchiff) September 24, 2019
It is important to note that Gold’s price has climbed from its 30-day lows of $1,490 per ounce to its current price of $1,505 per ounce, but it dropped sharply today from highs of $1,535, and is currently trading down nearly 2%.
The coming days and weeks will likely illuminate whether or not Bitcoin’s latest drop will truly cut lower and extend throughout the rest of 2019.