Bitcoin [BTC] price has failed to break above the 200-Day Moving Average for bullish confirmation. It presented two shorting opportunities last week above $8500 and $8300. The price started to dip below $8000 on 15th October 2019.
The price of Bitcoin at 8: 45 hours UTC on 20th October 2019 is $7915. It is trading 4.5% lower on a weekly scale.
The downtrend is also triggering other bearish signals (death cross between moving averages). While crypto-analysts see a lot of support below current levels, gold buff Peter Schiff calls a drop to $2000. The basis of his analysis is the head and shoulders pattern formed on the daily chart beginning in May.
BTC/USD 1-Day Price Analysis (Peter Schiff) (Tradingview)
The Bitcoin chart looks horrible. 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 neck line just below $8K, that projects a collapse to below $2K!
The analysis is tremendously scary for a crypto investor. It looks legit as well, however, there are many mistakes cited by crypto-experts on it. Crypto-trader Josh Rager tweeted,
Imagine believing that you can actually predict the price of Bitcoin on high time frame charts by using H&S patterns
The head and shoulders pattern requires confirmation of break below support. Moreover, that alone is not a confirmation of the absolute target as Fibonacci retracement levels and prior support levels are important to consider as well.