Schiff points out this 30% decrease as a clear sign of Bitcoin entering a bear market, at least when measured against the traditional safe-haven asset, gold.
BTC/USD Chart by TradingViewHis past recommendations to choose gold over Bitcoin when the latter was trading below the $20,000 level have been met with criticism, especially since Bitcoin’s price, despite its volatility, stands around the $65,000 level today.
As for now, the price of digital gold is hovering above the crucial support level represented by the 200-day moving average, near $49,800. If Bitcoin’s price maintains above this line, it might indicate continued faith among investors and a potential rebound. Resistance is seen around the $67,300 level, which, if broken, could invalidate the bearish sentiment and signal a possible bullish reversal.
As for growth scenarios, consolidation above the $61,000 level followed by a sustained push above the $67,300 resistance could see Bitcoin regain its upward momentum. Such a move would be crucial to challenge the bearish perspective and may signal that Bitcoin’s price in gold terms is not the sole indicator of its market health.
However, the Bitcoin and gold comparison is more complex than you might think, as both assets serve different functions and react to the market differently. Gold is more of a traditional safe haven asset, while Bitcoin offers more risk exposure and acts like a digital store of value.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
