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Peter Schiff Shares Bearish Technical Pattern, Predicts Rapid Bitcoin Crash

Mon, 02/14/2022 - 08:50
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Arman Shirinyan
Famous Bitcoin critic bets on the cryptocurrency dropping once again
Peter Schiff Shares Bearish Technical Pattern, Predicts Rapid Bitcoin Crash
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One of the most famous Bitcoin critics, Peter Schiff, has once again predicted the crash of digital gold. But this time the reason lies in the technical conditions of the cryptocurrency. According to the chart shared by Schiff, Bitcoin has formed a strong bearish pattern called "Double Top."

Schiff bets on $10,000

As the chairman of SchiffGold suggests, the drop of Bitcoin below $30,000 will almost immediately launch the cryptocurrency to $10,000 since nothing on the long-term chart protects Bitcoin from falling to the aforementioned support zone.

But while the economist predicts a fall to extreme lows, he still thinks that Bitcoin has a long way to fall and may even reach the absolute low and lose all of its value gained during the year. 

Schiff's analysis is based on the widely known technical pattern called "Double Top," which quite often marks the top of a bullish rally and is considered finished when a price falls below the "neckline" that currently stays at approximately $30,000. 

How accurate is Schiff's prediction?

According to the weekly Bitcoin chart, the double top pattern is not as accurate as it should be. In addition to low accuracy, the formation itself does not seem to look finished as Bitcoin has successfully bounced from $35,000 and reached $45,000 recently.

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Despite the reversal and plunge to $42,000, the double top pattern on the weekly Bitcoin chart could already be considered flawed. Previously, Peter Brandt noticed that the cryptocurrency is forming another head and shoulders pattern.

At press time, Bitcoin is trading at $42,100 due to losing 8% of its value three days ago.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.