U.Today - Renowned gold advocate Peter Schiff has once again shared his bearish outlook on Bitcoin, highlighting that it is an existential moment for the digital gold. Last week, Schiff pointed to Bitcoin's position, suggesting that its dip into what he calls the "danger zone" could be a decisive turning point.
Bitcoin has indeed broken the $60,000 threshold, a level that had acted as a strong psychological and technical support throughout the 2024 bull run. This breakdown has further amplified negative sentiment on the market. According to Schiff, falling below this key level could spell the end of the bullish run that has captivated the market over the past year.
The chart reveals Bitcoin currently around $58,540, with the 100-day Exponential Moving Average (EMA) in close proximity. Schiff warns that a sustained drop below this moving average would confirm the bearish trend, effectively "ending the rally" and potentially terminating the bull run for the foreseeable future.
Moreover, an increase in trading volume accompanying the price drop suggests heightened selling pressure. This rise in volume is typically a bearish indicator, further supporting Schiff's hypothesis that the market is turning. The sentiment among traders is becoming increasingly cautious, with many bracing for further declines.
From a technical standpoint, if Bitcoin fails to reclaim the $60,000 level, the next major support is at $51,965. This represents a significant retreat from recent highs, and slipping to this level could encourage further selling.
On the other hand, a rebound from current levels must overcome resistance at $60,000 to invalidate the bearish scenario. A successful push above this could see Bitcoin attempting to reach higher resistance levels near $64,000, providing a glimmer of hope for bulls.