Bitcoin has confirmed a bearish reversal. In the last 24 hours, the market has bled, wiping out billions in a couple of hours. As is the case, the skeptics have taken this opportunity to hit at digital assets. And as panic grows, the believers have been reassuring the market, hoping the market can find some stability. Two of the most outspoken people from both sides, Peter Schiff and Anthony Pompliano have been playing their part.
On one side, Schiff has been calling for further downside from Bitcoin stating that prices are headed to $4,000 or lower. In Schiff’s view, Bitcoin has hit its top and a 50% downside will follow. In a tweet he stated:
“#Bitcoin has finally broken below the support line of the large descending triangle it has been carving out for months. This is a very a bearish technical pattern, and it confirms that a major top has been established. The risk is high for a rapid decent down to $4,000 or lower!”
Schiff’s outlook looks unlikely with many attributing the recent drop to the disappointing Bakkt launch rather than prices having topped. This has culminated with a rapid drop with Bitcoin’s hash rate which as we reported dropped by around 40%.
If it’s so, then prices will begin recovering soon as the market comes to terms and the launch begins gathering momentum and as hash rate gets back to previous highs.
Pompliano, in a move to reassure investors, stated that this, and other short term price movements, have nothing to do with the long term outlook. While this is not entirely true since volatility continues to hinder adoption of the asset, it reassures investors that this is mere setback and prices are likely to recover in the days to come.
Bitcoin Price Update
At the time of press, Bitcoin is hovering just above $8,300 after breaking the $8,500 support. It is crucial that the asset finds support above $8,000 with further drops likely to see the asset test the $7,500 support.