- Bitcoin is just at the beginning of a treacherous dive to $4,000 or lower according to Peter Schiff.
- Bitcoin recovery tested $8,800 but succumbed to more losses currently risking $8,200 support.
Twice in a period of seven days, Bitcoin price tested $9,300. The initial drop ensued after a failed breakout attempt at $10,400. The second attempt revisited the region after $10,000 support failed to hold. The jaw-dropping plunge yesterday saw Bitcoin dive more than $1,500 in the afternoon of the American session. This marked the prediction I made in yesterday’s analysis correct. However, the plunge not only exceeded my expectations but also those of other analysts.
Bitcoin price is currently trading at $8,313 after a recovery staged towards $9,000 hit a dead-end at $8,800. The bears have taken advantage of the dilapidated technical climate to thrust Bitcoin to the intraday lows of $8,223 (on Coinbase).
BTC/USD 4-hour chart
The current technical picture as observed with the moving average convergence divergence (MACD). The signal is not just strongly negative; the wide divergence is encouraging sellers to bet more on Bitcoin dropping to levels under $8,000. Besides, Bitcoin ‘haters’ like Peter Schiff reckon that this is just the beginning of a treacherous journey to $4,000 or even lower.
#Bitcoin has finally broken below the support line of the large descending triangle it has been carving out for months. This is a very a bearish technical pattern, and it confirms that a major top has been established. The risk is high for a rapid decent down to $4,000 or lower!
— Peter Schiff (@PeterSchiff) September 24, 2019
Consequently, BTC/USD is trading way below the moving averages. The widening gap between the 50 MA on the four-hour chart below the 100 MA paints a picture of a bearish momentum likely to last a significant while.
Daring to glance upwards, the first hurdle Bitcoin will face is $8,400. Trading above this level could allow for gains towards $8,800. However, the return above $9,000 will depend on the momentum Bitcoin will have on breaking $8,800 level.
Bitcoin Key Technical Levels
Spot rate: $8,348
Relative change: -201
Percentage change (daily): -2.34%
Trend: Strongly bearish
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige