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Renowned gold and Bitcoin bear Peter Schiff stated that he believes the trend in Bitcoin could intensify, while pointing out a critical support level that Bitcoin investors should definitely not overlook. In the event of a collapse, his chart suggests that the digital gold could lose up to 60% of its value.

Currently, Bitcoin’s price is trading slightly below the 200 EMA. This level has always been a reliable stopgap for a long-term trend, which makes it significant. A break below this level could signal a more serious bearish trend and significant price declines. The bearish outlook is reinforced by resistance at the 50 EMA, which is located at $63.634, and the 100 EMA, which is located at $63.315.

BTC/USD chart from TradingView

While the overall trend remains weak, the RSI at 31 indicates that Bitcoin is approaching oversold territory, suggesting a potential recovery in the short term. Peter Schiff’s analysis of Bitcoin often leans heavily towards bearish extremes, despite being based on traditional market skepticism.

If Bitcoin breaks through its current support, a forecast of, say, 60% of its value could be considered alarming. A 60% drop would suggest a drop to around $23,000, which may not be consistent with previous price patterns, though further drops are still possible. Despite those drops, Bitcoin has shown some resilience – but clearly not enough.

Due to adoption trends and bullish investor sentiment, Bitcoin has recovered from similar declines before. Despite recent declines, institutional interest in Bitcoin has not waned.

Institutions continue to support Bitcoin by investing in and developing products tied to the cryptocurrency, indicating that they have confidence in its long-term potential. Market sentiment is subject to sudden changes. Positive news can quickly change the narrative and drive up costs. Clearer regulations or improved technology are two examples of this.

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Arman Shirinyan