Bitcoin looks shaky on the chart, making another drawdown possible
Bloomberg analysts say the flagship cryptocurrency may well fall further, despite the recent 15% rebound 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 was activated after BTC fell below 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.
Peter Schiff expects BTC to drop for similar reasons
Earlier this month, prominent Bitcoin critic and fund manager Peter Schiff, tweeted that the Bitcoin chart showed a combination of Double Top and Head and Shoulders patterns. Both are bearish, so he called it a “worrying combination,” saying Bitcoin has a long way to go if these formations materialize.
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.