It was reported on Monday, August 22, that bitcoin skyrocketed to the important psychological level of $25,000, following the release of US inflation data.
As a result, crypto skeptics, who saw BTC falling below $10,000, incurred losses. The launch of the first spot bitcoin private trust by BlackRock, an investment company, instilled optimism in crypto enthusiasts. The project is a partnership with Coinbase, a crypto exchange. The euphoria was felt across the virtual currency market after the announcement, which boosted hopes for new records.
Still, there are those who do not share such optimism. Peter Schiff, the chief market strategist at Euro Pacific Asset Management, calls it a sucker’s rally and says it is not sustainable. “The market is going to plunge. I think people should take advantage of the rally they’ve got right now and get out. A lot of people still have profits in these tokens. People bought bitcoin four, five, six years ago, and they have big profits. Same thing with ethereum. People should get out because otherwise, the market’s going to take those profits,” he pinpointed.
The strategist claims that the crypto market is in a bubble despite already having fallen from its all-time high of $69,000.
Earlier, the flagship cryptocurrency encountered strong resistance around the important psychological level of $25,000. At the same time, a negative divergence between its price and the Relative Strength Index (RSI) occurred. BTC hit a new high at around $24,873, while the RSI came even lower. Analysts suggest it happened due to the loss of a bullish impulse. Therefore, bitcoin may soon enter a correction. Support is seen at around $23,263, in line with the 38.2% Fibonacci retracement level.
