Recently, Bitcoin's price saw a sudden drop of over $3,000 in just about 10 minutes, which was almost a 4.5% fall. Peter Schiff, a known critic of Bitcoin, compares this to a hypothetical $100 drop in the price of gold in the same time frame.
Gold, on the contrary, saw a slight increase. Schiff warns that if Bitcoin's price keeps dropping, investors in Bitcoin ETFs could be in a tough spot because they cannot trade until the New York Stock Exchange (NYSE) opens the next day. That fact traps them and potentially exposes them to losses they will not be able to hedge.
For Bitcoin, the chart shows that after a strong upward trend, it faced a sudden drop, reaching down to about $62,209. This kind of quick change in price can be worrying for those who have invested in it via an ETF rather than gaining direct exposure via centralized or decentralized exchanges, as they cannot sell or buy until the market opens again. This means that if the price of Bitcoin falls a lot overnight, they could lose money and not be able to do anything about it until the next day.
When we look at Bitcoin's chart for possible growth, there are important levels to watch. The support level at around $55,811 is key. This is where the price might find a strong enough base to stop falling during this price correction. However, if it breaks this level and goes lower, the next support is near $47,476.
On the brighter side, if Bitcoin's price goes back up and passes the resistance level at around $66,423, it could continue to grow. This would show that Bitcoin is recovering from the sudden drop and could go on to reach higher prices.