In the midst of escalating geopolitical tensions and renewed hostilities in the Israel-Iran conflict, Bitcoin (BTC) encountered significant selling pressure, dipping below $62,000. Subsequently, the BTC price has partially recovered and is currently trading around $64,111 levels. Notably, Bitcoin critic Peter Schiff anticipates a significant price crash, suggesting that Microstrategy, the largest corporate holder of Bitcoin, could face substantial losses amounting to $2.7 billion.
Peter Schiff issued a stark warning regarding the cryptocurrency’s price, emphasizing the significance of the $60,000 level as critical support.
Schiff highlighted the possibility of a formidable triple-top formation should Bitcoin decisively break below the $60,000 mark. According to his analysis, such a breach could trigger a downward spiral, with a projected downside target of $20,000.
In addition to the broader implications for Bitcoin, Schiff pointed out the potential financial ramifications for MicroStrategy ($MSTR), a prominent company heavily invested in Bitcoin. If Bitcoin were to drop to $20,000, Schiff estimates that MicroStrategy would face a staggering unrealized loss of $2.7 billion on its holdings of 214,000 Bitcoin, acquired at an average price of $34,000.
Schiff, a gold bug has in the past predicted a doomsday for Bitcoin several times. However, the strong undercurrent from Bitcoin bulls has invalidated his thesis several times. On the other hand, MicroStrategy executive chairman Michael Saylor remains cool amid the current turbulence while adding that chaos is always good for BTC.
Bitcoin and the broader cryptocurrency market met with a similar geopolitical situation when the Russia-Ukraine special military operation broke out back in February 2022. However, after some initial turbulence, the market bounced back even stronger.
According to crypto analyst Rekt Capital, the Bitcoin price has been in the “Danger Zone” for the past 23 days, signaling a historical pattern preceding Halving events. With the Halving just 5 days away, Bitcoin has experienced a pullback of -18% in March and an additional -15% in April.
Historically, BTC tends to undergo Pre-Halving retraces approximately 14 to 28 days before the Halving event. In the 2020 Halving, this retrace amounted to a depth of -20%. Similarly, in the 2016 Halving, Bitcoin experienced a more significant retrace of -40%.
These trends highlight the potential for significant price fluctuations leading up to Halving events, a phenomenon investors should monitor closely. The analyst further noted that this opportunity to buy the Bitcoin dips won’t last for long enough.
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