The ascent from $10,000 to $19,920 seen over the past three months happened amid the bullish price action in the equity markets. The cryptocurrency has rallied to record highs, but has yet to decouple from the stock markets. He is convinced that Bitcoin topped out at the 69,000 level last November. In a recent interview with Kitco, gold bug Peter Schiff predicted that the price of Bitcoin could still drop below the 10,000 level due to forced selling.
#BITCOIN EXPERT WARNS OF IMMINENT DROP DRIVER#
8, 2020Ī potential sell-off in the stock markets could be a driver for a notable price pullback in bitcoin. Bitcoin on Track to Drop Below 10,000, Peter Schiff Warns. The MACD histogram, an indicator used to gauge trend strength and shifts, is producing deeper bars below the zero line, also indicating a downside move may be imminent.
“The reasoning is on some technicals and how the spot market is structured with large orders at around the lifetime high.”īitcoin’s 14-day relative strength index recently charted a bearish divergence, or lower high, possibly warning of an impending price pullback. “We are leaning bearish here and beginning to unwind some long exposure in bitcoin and DeFi selections,” said Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG, referring to decentralized finance.
With the repeated rejections near all-time highs, the cryptocurrency is beginning to look heavy on technical charts, forcing some traders to reassess their bullish positioning. The balance held in so-called accumulation addresses has declined by over 4% to 2,698,719 bitcoin in the past three weeks, according to data source Glassnode. However, a glance at the stats surrounding Open Interest on Bitcoin Futures nearing an unprecedented peak is beginning to raise eyebrows among financial experts.
There is evidence of some investors liquidating their bitcoin holdings. Bitcoin enjoyed a record-breaking October, climbing from 47,000 to an all-time high of 69,999 before settling above 60,000 in the last week.