“The Bitcoin chart looks horrible,” Schiff tweeted. “Not only does the flag that followed the recent breakdown project a move to $6K, but we are close to completing the right shoulder of a head and shoulders top, with a $14K head, and a neckline below $8K, that projects a collapse to below $2K!”
While the crypto community quickly came to Bitcoin’s defense, the technical indicators do seem to suggest further downside could be ahead. However, it’s important to note that Bitcoin is notorious for setting up and invalidating the head and shoulders (and inverse head and shoulders) pattern — although, it’s debatable whether a head and shoulders setup even exists.
As we previously reported, the current outlook based on various Bitcoin option maturity dates paints a fairly bleak picture for those calling for new all-time highs by the end of the year. Various traders and analysts have also offered differing opinions about Bitcoin’s next move, with some suggesting a drop to $6,000 may be the next major move.
More: Peter Schiff’s Tweet
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.