Bitcoin’s move back above $20,000 does not mean it has bounced off the bottom, warned Peter Schiff, the well-known cryptocurrency critic and gold advocate.
Don’t get excited about #Bitcoin being back above $20K. 20 is the new 30. This is just another bull trap. Nothing drops in a straight line. In fact, this slow motion crash has been extremely orderly. No sign yet of any capitulation that typically forms a bear market bottom.
— Peter Schiff (@PeterSchiff) June 19, 2022
In the view of the president of Euro Pacific Capital, this level would be as much a ‘bull trap’ as $30,000.
On May 11, the prices of digital gold broke through this level. For about a month the price remained near the psychological mark, but on June 13 fell below $23,000.
On Saturday, June 18, the price of the first cryptocurrency broke through the $20,000 level. A trader going by the nickname crypto bullet triggered a price reversal from $18,600. The local low was $17,760 (CoinGecko), after which Bitcoin rose above $20,000.
“Nothing falls in a straight line. In fact, this is a very orderly crash in slow motion. There are no signs yet of any capitulation that typically forms the bottom of a bear market,” Schiff said.
In May, he forecast a test of the Bitcoin at the $8,000 level. In mid-June the investor suggested that the bottom could be around $5,000.
Following the drop to $20,000, Galaxy Digital founder and CEO Mike Novogratz expressed hope that the price would hold this level.
In early June, BitMEX cofounder Arthur Hayes said that Bitcoin, trading around $30,000, has reached the bottom of the current cycle.
Read ForkLog’s bitcoin news in our Telegram — cryptocurrency news, prices and analysis.