Bitcoin's return to levels above $20,000 does not mean that it has bounced off the bottom. Peter Schiff, a well-known cryptocurrency critic and gold advocate, warned investors about this.
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
According to the president of Euro Pacific Capital, this mark will become the same «trap for bulls», like $30,000.
On May 11, digital gold quotes failed this level. For about a month, the price remained close to the psychological mark, but on June 13 it fell below $23,000.
On Saturday, June 18, the rate of the first cryptocurrency broke through the $20,000 level. A trader under the nickname crypto bullet made a price reversal from $18,600 The local low was $17,760 (CoinGecko), after which bitcoin really rose above $20,000.
< /p>BTC/USD hourly chart on the Bitstamp exchange. Data: Trading View.
«Nothing falls in a straight line. In fact, it's a very orderly crash in slow motion. So far, there are no signs of any capitulation, which usually forms the bottom of a bear market,” Schiff said.
In May, he predicted a test of $ 8,000 by Bitcoin. In mid-June, the investor suggested that the minimum could be around $5,000.
Recall that after the collapse of digital gold to $20,000, the founder and CEO of Galaxy Digital crypto bank Mike Novogratz expressed hope that the price would hold this level.
In early June, BitMEX co-founder Arthur Hayes said that bitcoin, trading at about $30,000, had reached the bottom of the current cycle.
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