BTC on Rising Wedge, But Could Tap Below $10k Support: Schiff

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●  Economist Peter Schiff says that BTC might test a support level of $10,000.

●  He analyzed some bearish patterns such as double top for BTC.

●  The coin is currently trading at $24,000.

Economist and founder of SchiffGold Peter Schiff has pointed out a bleak perspective on BTC trade. He screened the weekly trading chart of BTC and indicated that the pattern remains very “bearish,” in a way that there is both a “double top and a head and shoulders top.” He focused on a “rising wedge” pattern forming below the neckline and stated that the minimum support level for BTC will be below $10,000. 

Trading chart of BTC in Schiff’s perspective
BTC/USDT- Weekly Trading Chart (Source: TradingView)

In detail, Schiff refers to the double top with the price of BTC in April and November 2021, which are  $64,877 and $69,010, respectively. These two prices are nearly close, forming two tops or highs, as depicted in the chart.

In detail, the double top pattern states that following two peaks there would be a downtrend that breaks the neckline (between the two tops) and further moves down. And this clearly happened for BTC until its price declined to $17,970 on June 13, 2022.

The head and shoulders top pattern for BTC is evident in the chart; a “head” formed in November 2021, and “two shoulders” in September and March 2022. This trading pattern predicts a coin’s price movement in a “bullish to bearish” trend reversal. 

As shown in the graph, Schiff signifies the formation of a “rising wedge” below the neckline. The neckline is a resistance or support level that is found on a head and shoulders pattern. In this case, there are two necklines/support levels for BTC. One neckline is formed at $39,873 and the other at $30,000.

The rising wedge mentioned above started on June 20, 2022, and is currently moving in an uptrend. However, some crypto critics say that there would be a slight spike reaching the second support level (neckline) of $30,000, whereas Schiff is bearish that the BTC price might hit below the $10 support level.  To note, BTC has been trading over 63% down since November 8, 2021.

Adding on, BTC rallied to $25,190.73 in intraday trading, which is its highest price value since June 14, 2022. At press time the coin trades at a price of $24,095.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CE. No information in this article should be interpreted as investment advice. CE encourages all users to do their own research before investing in cryptocurrencies.

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