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In a recent interaction on X, longtime cryptocurrency critic Peter Schiff warns that the $60,000 level might not be the ultimate price floor for Bitcoin price, referring to it as a "trap door".
This is in contrast to the widely held view that $60,000 might be the ultimate price floor in this current cycle and that Bitcoin may not drop below this level, cushioned by institutional investment.
Bitcoin reached a low of $60,000 on February 6 and has since held up above this level, even up to the present, leading some to believe that a floor might have been reached.
An X user brought this fact to Schiff's notice, saying, "$60,000 is the floor sir." Schiff, in his usual characteristic manner, waved this off while using the chance to double down on his bearish outlook for Bitcoin, saying, "It's likely a trap door that Bitcoin will fall through."
"It's a long way down," Schiff said, hinting at further downside for Bitcoin's price.
At a current price of $74,720, Bitcoin is up nearly 25% from the low of $60,000 reached on February 6, with analysts suggesting potential consolidation ahead of the next major move.
Bitcoin short-term price action
Bitcoin surpassed $82,000 in a few attempts in May, rising above the True Market Mean at $78,300 but failing to sustain above it. Previous cycles suggest weeks to months of consolidation around this level might be needed before a credible bull market transition can be confirmed.
Below here, the cost basis of investors who accumulated during the February to April consolidation period, now classified as 1-month to 3-month holders, sits near $71,400, representing the most probable near-term support level.
The 30-day cost basis at $78,200 has flipped from support to overhead resistance, while the cost basis at $71,400 now represents the most immediate support floor for the current pullback.
At the time of writing, BTC was down 3.29% in the last 24 hours to $74,720 as the crypto market saw a sudden drop early Saturday.
Dan Burgin
