Arman Shirinyan
Unfortunately, Bitcoin is not developing as the majority expected
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Bitcoin recently experienced a flash crash and fell to just above the $61,000 mark. According to Peter Schiff, this price is equivalent to about 26 ounces of gold. A famous Bitcoin critic, Peter Schiff, pointed out that at its peak two and a half years ago, one Bitcoin was equivalent to 37 ounces of gold.
Schiff points out that this 30% drop is a clear sign that Bitcoin is entering a bear market, at least compared to the traditional safe-haven gold.
BTC/USD chart from TradingView
His previous recommendations to choose gold over Bitcoin when it was trading below $20,000 drew criticism, especially as Bitcoin's price today hovers around $65,000 despite its volatility.
Currently, the price of digital gold is hovering above the crucial support level represented by the 200-day moving average at around $49,800. If Bitcoin price stays above this line, it could indicate continued investor confidence and a possible recovery. Resistance is visible around the $67,300 level which, if broken, could invalidate bearish sentiment and signal a possible bullish reversal.
As for growth scenarios, a consolidation above the $61,000 level followed by a sustained rise above the $67,300 resistance could see Bitcoin regain its uptrend. Such a move would be crucial in challenging the pessimistic outlook and could be a signal that Bitcoin's gold price is not the only indicator of market health.
However, the comparison between Bitcoin and gold is more complex than you might think, as both assets perform different functions and react differently to the market. Gold is more of a traditional safe haven, while Bitcoin offers higher risk and acts like a digital store of value.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.
Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
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