Expert: bitcoin may fall below $10,000

After the release of inflation statistics in the US, bitcoin demonstrated a confident rally, soaring to a psychologically important mark near $25 thousand ($24,873). A little later, the cryptocurrency declined to $23,154.

Simultaneously with the release of inflation data, BlackRock announced the launch of the first private bitcoin trust in cooperation with the cryptocurrency exchange Coinbase. The combination of these two events has raised a wave of optimism in the market: many investors assume that new record highs will be reached soon.

However, a number of experts disagree with such a scenario. For example, Peter Schiff, chief analyst at Euro Pacific Asset Management, argues that such a rally cannot be sustainable and the crypto market still expects a collapse. Schiff even advises investors to leave the cryptocurrency market altogether, since there is a risk of losing all income. According to the analyst, the crypto market is one «big bubble», and it is possible that bitcoin will fall to the level of $10 thousand. 

The technical picture of bitcoin is also in favor of such a forecast. Experts note that now there is a negative divergence between the BTC price and the RSI indicator. And although a new maximum was reached at $24,873, the RSI formed a lower maximum – and this indicates a loss of positive momentum and a likely correction.