FX.co ★ Peter Schiff: Bitcoin will fall below $5,000

Bitcoin tried to reach above the $18,500 mark on the 4-hour TF. It was moving toward this level, to be more precise, but it could not figure it out. Currently, the "bitcoin" quotes are declining once more, and the price has settled below the ascending trend line. However, as we can see, Bitcoin only had enough room to grow by a few thousand dollars. What do a few thousand dollars mean if the bitcoin price has dropped by 75% by 2022? Not even a correction, just the typical upward pullback. Technically speaking, breaking through the trend line indicates that a new fall is imminent. By the way, many traders think that bitcoin has reached its "bottom" right now. Remember that strong trends typically end with a sharp rebound and a powerful movement in the opposite direction. For instance, the euro and the pound could have ended their long-term downward trends a few months ago, at which point they would have gained more than 1000 points, but there needed to be more fundamental justifications for this. We haven't seen anything remotely comparable to bitcoin. Therefore, the "bearish" trend is not finished, in our opinion.

Peter Schiff, a well-known bitcoin critic, concurs. He stated in his Twitter post that bitcoin could drop to $5,000 or even lower. According to Schiff, "what many traders perceive as the formation of a "bottom" is the formation of local peaks." He pointed out that the market has yet to fully price in the collapse of FTX and that it may result in the failure of other businesses, which would cause bitcoin to fall even further. According to Schiff, this year has eloquently demonstrated where investors should put their money. Gold's price held steady while the value of many financial assets decreased by tens of percent. Therefore, if we're talking about the preservation of wealth, gold is still the best option available to us. Welcome to the cryptocurrency market if you want to make the most money quickly.

The remarks made by Jamie Dimon, who compared bitcoin to stones, were also addressed by Peter Schiff. Schiff claimed that Dimon inflates digital currency because stones are far more practical. According to Schiff, they can be juggled and used as paperweights or slingshot shells.

As they consolidated below the trend line in the 4-hour time frame, the quotes for the "bitcoin" very quickly finished the formation of an upward trend. As a result, we are currently anticipating a new cryptocurrency drop with a target of $12,426. There are still no indications that bitcoin will experience rapid growth in the near future.