- 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