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Bitcoin critic Peter Schiff explained why BTC may collapse to $2,000

  • Bitcoin may fall to $2,000 once the neckline is broken.
  • Peter Schiff says it is a red flag, nit a buying opportunity.

The financial expert and vocal Bitcoin critic Pitter Schiff believe that Bitcoin's technical picture is horrible as the bear flag formation point to a potential decline towards $6,000 and proceed to as low as $2,000.

"The Bitcoin chart looks horrible. Not only does the flag that followed the recent breakdown project a move to $6K, but we are close to completing the right shoulder of a head and shoulders top, with a $14K head, and neckline just below $8K, that projects a collapse to below $2K!" he wrote in his Twitter account. 

However, bitcoin proponents offered him to prove his words with actions. Thus, well-known Bitcoin supporter Whale Panda suggested that he opened a short position on BitMEX with 100x leverage. He also mentioned that some citizens of certain countries are banned from the platform. 

"Hi Peter, how about putting some skin in the game? You can short Bitcoin 100x.  You're going to have to use a VPN though since well US, North Korea, Syria, Iran and other countries like this are banned." he wrote.

Unlike many Bitcoin owners, Schiff does not consider a decline to $2000 as a good buying opportunity. He believes that such price movements make Bitcoin a dangerous asset for serious investments.

"Do you really think that if the price of Bitcoin drops by 90%, from $20K down to $2K, that it will look like a bargain?  To whom?  Smarter investors will recognize that it can just as easily drop another 90%, from $2,000 to $200" he replied to one of the posts on Twitter.

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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