Bitcoin is not superior to gold - Peter Schiff
|- Peter Schiff explained why Bitcoin is worse than gold and an investment vehicle.
- BTC/USD is locked in a tight range ahead of the New Year.
A famous gold bug Peter Schiff criticized Bitcoin for 48% collapse from 2019 high and compared the digital gold with the precious physical metal. According to the head of Euro Pacific Capital, gold has lost only 3% from the 2019 peak, while Bitcoin is down nearly 50%.
He wrote on Twitter:
Bitcoin bugs claim that Bitcoin is superior to gold as a store of value. Yet if you bought gold at the high price for 2019, you are down just 3%, versus a 48% loss had you done the same with Bitcoin. Even worse, those who dropped gold and bought GBTC are down 54% on the trade.
Notably, Bitcoin enthusiasts often claim that Bitcoin is a better long-term investment and a store of value than gold as it has a higher ROI (Return on Investments). Since the beginning of 2019, Bitcoin nearly doubled its value, while gold gained less than 20%.
Back in November, Schiff said that Bitcoin was ready to collapse to $1,000 due to technical factors. He noted a "head and shoulder" pattern on long-term charts when Bitcoin traded around $7,400.
BTC/USD: technical picture
At the time of writing, BTC/USD is changing hands at $7,230, down about 2% in recent 24 hours and unchanged since the beginning of the day. The first digital coin is locked in a range with mild bearish bias ahead of the New Year. Granted that nothing unexpected happens when nearly the whole world celebrates the New Year, we will see Bitcoin navigate safely through the low liquidity period.
From the technical point of view, the local support is created by $7,150 (61.8% Fibo retracement for the upside move from the lowest level of 2018). It is closely followed by psychological $7,000 and $6,800 that has been limiting the decline in recent weeks. Once it is out of the way, December 18 low of $6,43o will come into focus.
On the upside, we will need to see a sustainable move above $7,500 for the upside to gain traction. This resistance area is created by a combination of SMA50 (Simple Moving Average) daily and the upper line of the daily Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on $8,000 reinforced by SMA100 daily.
BTC/USD daily chart
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