Bitcoin on High Alert as Peter Schiff Forecasts Enormous Price Plunge to 38k
In the latest financial analysis, cryptocurrency skeptic Peter Schiff has raised alarms about a potential downturn in Bitcoin’s value, particularly concerning Bitcoin ETFs. Schiff cautions that a drop below the $38,000 mark could trigger a significant sell-off by Bitcoin ETF investors, leading to an even steeper decline in price.
Currently, Bitcoin’s value is oscillating, with a resistance level at $48,000 and a support level at $38,000. Despite an increase in Bitcoin’s market dominance, there’s a noticeable decrease in open interest, signaling persistent market volatility.
Schiff, notorious for his critical stance on digital currencies, has once again cast doubts on Bitcoin’s trajectory. His latest warnings spotlight Bitcoin ETFs, predicting a large-scale liquidation that could further shake the market. Schiff’s grim forecast arrives as Bitcoin faces substantial price swings.
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**The Peril of a Bitcoin ETF Liquidation**
According to Schiff’s assessment, more than 70% of Bitcoin ETF investors are seeing red. He foresees that if Bitcoin’s price slips under $38,000, it could lead to universal losses among Bitcoin ETF holders, possibly inciting a mass exodus as investors attempt to minimize their losses. Schiff’s history of bearish predictions adds credibility to his current caution, suggesting that the cryptocurrency’s slump is far from over.
At a valuation of $54K, Schiff estimates that a vast majority of Bitcoin ETF purchasers are incurring losses. A descent below $38K, he argues, will place all Bitcoin ETF investors in the red. This, he believes, is when the real sell-off will commence, with numerous crypto ETF speculators likely to capitulate.
— Peter Schiff (@PeterSchiff)
July 5, 2024
The $38,000 benchmark coincides with the 100-day moving average and the central trendline of the ascending channel, establishing it as a key support point. Bitcoin is currently in a holding pattern, caught between the $48,000 resistance and the $38,000 support levels.
Bitcoin has had difficulty breaking through the $48,000 barrier, leading to a fallback to approximately $41,000. Short-term analysis indicates an equilibrium between supply and demand. If Bitcoin falls beneath $42,000, it may proceed to tumble towards $38,000.
**Market Update: Latest Developments**
As reported, Bitcoin’s price has dipped by 7.27%, now trading at $54,482.91, with a daily transaction volume of $40.5 billion. The 24-hour price fluctuation ranged from a low of $53,971.30 to a high of $57,453.84. This decline is exacerbated by the recent transfer of $2.7 billion worth of Bitcoin by Mt. Gox to an undisclosed wallet, causing ripples of concern among crypto enthusiasts.
Moreover, U.S. spot Bitcoin ETFs have experienced outflows totaling $20.45 million, contributing to the pessimistic outlook.
**Factors at Play: A Wider View**
Schiff’s cautionary statements, combined with prevailing market dynamics, have reignited discussions regarding Bitcoin’s reliability as an investment vehicle. Despite the downturn, Bitcoin’s dominance has risen by 0.80% since the previous day, hinting at potentially more drastic drops in the altcoin sector. Meanwhile, Bitcoin’s open interest has fallen by 11.19%, now standing at $16 billion.
#Bitcoin
has recently traded as low as $53,550. This represents a 27.5% reduction from its peak value in U.S. dollars and a 38.5% decrease when valued in
#gold
. Schiff warns that this bearish phase is far from concluding, cautioning
#HODLers
to take note.
— Peter Schiff (@PeterSchiff)
July 5, 2024
Bitcoin’s market capitalization is currently at $1.07 trillion, mirroring the ongoing uncertainty and turbulence within the cryptocurrency sphere.
To conclude, the tug-of-war between the $38,000 and $48,000 price levels underscores the technical indicators and overall market sentiment influencing Bitcoin.
**Also Read:**
Bitcoin Fear and Greed Index Plummets as Mt. Gox Commences Repayments After Ten Years
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Bitcoin
Price Analysis