Bitcoin [BTC] has dropped by 20% from $8499 last week to test lows at $6610.
The price of Bitcoin BTC] at 3: 40 hours UTC on 25th November 2019 is $6715. It is trading 7% lower on a daily scale.
As reported earlier on CoinGape, Peter Schiff had suggested that Bitcoin could drop below $2000 following the head and shoulder pattern.
Recently, Schiff doubled down on his analysis and also points out that the crypto media is biased against him. In hindsight, his take on sentiments against him might be accurate after all.
The pattern is right in front of everyone’s eyes on a daily scale. A massive head and shoulder with a top at $14,000. The recent price drop in Bitcoin also initiated the break-down, which should begin further shorting.
Moreover, traders and investors might also have been blindsided by his bearish views. However, as Leading chart analyst, Peter Brandt also reiterates the same analysis now in progression, the fear is bound to increase. He notes,
I actually do not think this is a valid H&S top, but one never really knows until history is written. $
Besides, the targets of Brandt differ from Schiff by about $3000. The target projections will potentially form the low of this bear market. The current progression has broken down below all bullish support levels.
While $7000 was looking like an ideal short term reversal, price continues to plummet to find new lows in the second half of 2019.
Tone Vays analyzed the price action before the break below $7000. According to his sequential analysis, Bitcoin has begun a new bearish count.
Hence, the carnage in Bitcoin can be expected to continue as the week progresses. The CME Bitcoin [BTC] monthly futures contracts will end this week on the 29th. Hence, traders can continue to expect massive price volatility.
Will Bitcoin record new bottoms below $3150 (December 2018) or adhere to a higher bottom his time? Please share your analysis with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com