It isn’t a secret that Bitcoin (BTC) hasn’t been doing too well as of late. While the cryptocurrency is up 100% on the year, it is down some 45% from the year-to-date high of $14,000.
Related Reading: Bitcoin Now the World’s Eleventh Largest Money Supply
This dramatic drawdown from $14,000 to as low as $7,700 has led many optimists to claim that Bitcoin will soon restart its surge to fresh all-time highs. Yet, a prominent cryptocurrency skeptic claims that BTC’s chart is “look[ing] horrible,” citing technical analysis indicators. Ouch.
Bitcoin Price Chart “Horrible”
If you’ve followed cryptocurrency on Twitter at all over the past few years, you’ve likely noticed the cynics, the haters of Bitcoin and its ilk.
One of the most prominent members of these groups is Peter Schiff, a prominent libertarian economist and investor whose father vehemently taxation. While some may see him as an archetypal cryptocurrency holder and lover of decentralized digital money, he isn’t. In fact, Schiff owns less than one coin — which was obtained through donations and gifts — and has long bashed Bitcoin, calling it something with little inherent value and purpose over gold.
The libertarian continued to tout this line on Friday night, when he took to Twitter remarking that Bitcoin’s price chart “looks horrible.” He remarked that the “(bear) flag that followed the recent breakdown projects a move to $6,000,” which would imply a 25% drop from current levels if this move pans out.
The Bitcoin chart looks horrible. Not only does the flag that followed the recent breakdown project a move to $6K, but we are close to completing the right shoulder of a head and shoulders top, with a $14K head, and neck line just below $8K, that projects a collapse to below $2K!
— Peter Schiff (@PeterSchiff) October 19, 2019
That’s far from the end of it. He continued that not only did Bitcoin fall out of a flag, “but we are [also] close to completing the right shoulder of a head and shoulders top … that projects a collapse below $2,000.”
Of course, Bitcoin bulls haven’t taken kindly to Schiff’s latest analysis. Anthony Pompliano, a former Facebook team member that has since become a cryptocurrency investor and tacit industry spokesperson, accentuated in rebuttal to the critic Bitcoin’s scarcity, relative lack of penetration, amongst other facets of the cryptocurrency that may see it appreciate in the years to come.
Only ~ 1% of the world’s population (~ 70M) owns Bitcoin, a more scare asset than Gold.
You understand supply and demand economics ?
— Pomp ? (@APompliano) October 19, 2019
Yet, Schiff stuck to his guns. In response to Pompliano’s assertion that Bitcoin is the best-performing asset of the past decade, he wrote that “What goes up, must come down. You’re looking in the rearview mirror at what already happened… Bitcoin went up because everyone already bought. It’s a crowded trade. As the crowd sells the price will collapse.”
Related Reading: Bitcoin Price “Death Cross” 10 Days Out as BTC Stagnates at $8,000
Long-Term Bull Trend
Schiff’s technical analysis may be showing that it is only a matter of time before Bitcoin sinks to fresh lows, but for now, indicators suggest that the cryptocurrency market is in a macro bull trend.
The three-day Bitcoin chart on Bitstamp printed a “golden cross” back in early-August. What’s notable about this is the last time this technical event played out was early-2016, February 2016. What followed this last golden cross was the rally from $500 to $20,000 — a jaw-dropping 4,000% move — in under 24 months, of course. Should history repeat from here, Bitcoin could reach $400,000 by mid-2021.
Also, the one-month Ichimoku Cloud has seen its first lead line has crossed above its second, flipping green for the first time in months.
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