The crypto market is again battling bearish volatility, with Bitcoin dipping to as low as $57,694 at the time of reporting.
Notably, this latest round of correction comes just two days after Bitcoin made an unsuccessful attempt to break through the $61K price range. Since touching $60,650 on Saturday, the premier crypto has since crashed by 4.87%.
While many in the market are hoping for a short-term rebound, renowned economist and long-time Bitcoin skeptic Peter Schiff has issued a warning to cryptocurrency investors.
In a recent commentary about Bitcoin on X, Schiff argued for a substantial decline in Bitcoin’s price based on what he interprets as a triple-top formation on the charts.
Schiff’s latest caution follows a string of bearish forecasts, but this time, he suggests that Bitcoin could fall much lower than many analysts are expecting.
Schiff further strengthened his argument by stating that Bitcoin’s performance looks even worse when priced in gold. As a staunch advocate of gold, Schiff frequently compares Bitcoin’s performance against the precious metal, consistently arguing that gold remains the superior store of value.
Bitcoin to Revisit $42K in the Short-Term
Schiff’s immediate price target for Bitcoin is the upward trend line, which he believes will provide short-term support at approximately $42K. However, his confidence in this level to hold for Bitcoin is low.
“At a minimum, Bitcoin is headed to $42K, but I doubt it will hold,” Schiff remarked. According to him, a far deeper correction is likely in store.
Notably, at the current price of $57,694, retesting $42,000 will wipe out 27% of invested capital in Bitcoin. Yet, Schiff’s bearish outlook does not end at $42K.
Long-Term Support: $15K–$20K Range
He projects that Bitcoin could revisit its long-term support zone in the $15K–$20K range, a price level not seen since the 2022 bear market. If this scenario plays out, it would represent a dramatic 74% decline from current prices. Emphatically, this will wipe out all Bitcoin’s recent gains since this bull market.
Notably, a bearish forecast for Bitcoin is a prevailing sentiment among crypto enthusiasts. However, many community analysts are less pessimistic than Schiff.
According to a recent update by analyst Ali Martinez, a closer examination of the Bitcoin MVRV Momentum reveals that the cryptocurrency has been in a downward spiral since falling below $66,750 in June. As of now, no clear signs of a reversal have emerged, supporting further bearish trend.
Zooming out, the #Bitcoin MVRV Momentum shows that $BTC has been in a downtrend since breaking below $66,750 in June, and the trend hasn’t shifted yet! pic.twitter.com/5P1wi1reQp
— Ali (@ali_charts) September 16, 2024