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Peter Schiff is back with another Bitcoin obituary, but this time, the situation might be more than just his usual goldbug ritual. The man known as probably the biggest critic of the cryptocurrency is not just speaking out against BTC on principle; he is pointing to something that actually shows up on the charts.
After Bitcoin hit an all-time high of $126,000 last year, the world's biggest cryptocurrency has dropped about 30%, while gold surged 65% in the same period. This is now causing a bigger narrative problem. According to Schiff, Bitcoin's inability to keep up with the precious metal's performance calls into question the whole "digital gold" idea. The market is slowly catching on to this mismatch.
Basically, Schiff says the market gave speculators too much time to buy, and the likely outcome is a "spectacular crash." What makes this prediction a bit more concerning than usual is the chart setup.
Bitcoin is now close to a death cross between its 23-day and 50-day moving averages right at $100,000 price point. No need to say how much importance this level holds for cryptocurrency. The 200-day EMA, which is currently around $69,000, is like a magnet for the current price action around $93,000. If it goes back to that level, which is by the way the all-time high of 2021, it would be a 27% drop.
Strategy did not buy Bitcoin?
Adding to the uncertainty: MicroStrategy has not said anything yet. On Mondays, Michael Saylor usually announces another round of corporate Bitcoin purchases. Today, he posted only "Bitcoin never takes holidays." No purchase disclosed.
Of course, Peter Schiff immediately fired back, saying "you can lose money in Bitcoin 365 days a year."
If the price does not bounce back to $101,000-$102,000 per BTC, where the moving averages meet, the sell-off might speed up. It is possible that Schiff's call is not just trolling this time; the "spectacular crash" might actually come true.
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