Bitcoin (BTC) has been trading within a tight trading range around $8,000 for the past week and has failed to incur any significant momentum in either direction that illuminates its near-term trend.
One prominent Gold bull and an outspoken Bitcoin critical is now noting that multiple technical formations point to the possibility that the cryptocurrency is currently positioned for a movement towards $2,000, but crypto-focused analysts are disputing his analysis, claiming that it ignores important factors driving BTC’s price action.
Bitcoin Continues to Consolidate, But Major Downwards Movement May be Imminent
At the time of writing, Bitcoin is trading up slightly at its current price of $8,040, which marks a slight recovery from its recent lows of $7,900 that were set overnight during a fleeting downwards movement that was quickly bought up by BTC’s bulls.
Peter Schiff, a prominent Gold bull and a frequent critic of Bitcoin and other cryptocurrencies, explained in a recent tweet that he believes that its recent downwards flag break below $10,000, and a potential head and shoulders top could be pointing to a movement towards $2,000. 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,” he said in a recent tweet.
A drop towards $2,000 appears to be highly unlikely, barring some sort of terrible fundamental shift for Bitcoin or the aggregated crypto markets, although some analysts do believe that the crypto is positioned for a movement down towards $6,000 before it finds significant support.
Analyst: Schiff’s TA Patterns Hold Little Clout
It is important to note that analysts do not believe that the patterns that Schiff is referencing as support for his idea that Bitcoin will drop towards $2,000 do not offer any significant insight into future price action. Imagine believing that you can actually predict the price of Bitcoin on high time frame charts by using H&S patterns,” Josh Rager, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet while referencing Schiff’s analysis.
Although analysts are split on whether or not Bitcoin will visit $6,000, even bearish analysts believe that this will be a region of significant support that propels it higher and it is highly unlikely that a drop below this level is imminent.