Bitcoin looks shaky on the chart, making another drawdown possible
According to Bloomberg’s analysts, the flagship cryptocurrency may well plummet further, despite the recent rebound of 15% from the lows it crashed to last week. BTC now looks more vulnerable than before.
These signs indicate further price fall is likely
According to the article, the recent bounce of Bitcoin has led to a “saucer-top” pattern forming on an hourly BTC chart. Inside it, a Head and Shoulders pattern has become active, which signifies a reverse from a bullish to bearish trend.
The pattern has been activated after BTC dropped back under the neckline of the formation.
Now, in order to avoid the risk of a further downfall, the Bitcoin price needs to rise above the $30,800 level.
At the time of writing, BTC is going at $29,024, having risen from below $29,000.
Peter Schiff expects BTC to go down for similar reasons
Earlier this month, prominent Bitcoin critic and fund manager Peter Schiff, tweeted that the Bitcoin chart was showing a combination of a Double Top and Head and Shoulders patterns. Both are bearish, so he referred to it as an “ominous combination,” saying that Bitcoin has a long way to fall if these formations play out.
Today, Schiff tweeted that he was surprised Bitcoin has been holding near $30,000 for a long time now, resisting a further drop. However, he believes this is merely a “bull trap,” whose goal is to lure in as many investors as possible and then put up another price collapse.