• 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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

BTC may drop to $34,000, taking the rest of the market with it

Bitcoin price defining a bearish top formation after weeks of indecision. Ethereum price blitzes bears with steady price momentum. Ripple price fails pattern test, poised for further losses.

More Crypto News

Elrond price poised for a 50% decline despite new EGLD staking mechanisms

Elrond price balances above crucial trend line support originating in February. 50-day simple moving average (SMA) grip on EGLD nearing an end. Elrond new staking proposal geared to accelerating decentralization.

More Elrond News

Dogecoin Price Prediction: DOGE plans to retest all-time highs

Dogecoin price has successfully bounced off the $0.397 to $0.451 demand barrier, hinting at an incipient upswing. A continuation of this momentum could push DOGE to $0.697 and $0.740. Breakdown of the support level at $0.371 will invalidate the bullish thesis.

More Dogecoin News

MATIC Price Forecast: Polygon primed for a 70% rally

MATIC price breakout from a minor correction gains traction above $1. Extreme overbought conditions on the weekly chart may not mark a top. Oddz Finance and Stakefish deals continue the accelerated adoption of everything Polygon.

More Matic News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast