Economist Warns That BTC Will Experience More Downside Risk
Peter Schiff is a famed economist, and this time, he has come up with a suggestion for Bitcoin investors. He said in a tweet that there is a high risk of a potential Bitcoin (BTC) downside. On the contrary, the potential for upside is very limited, so it would be wise for BTC investors to sell at current levels.
He also said that the support zone located at $18300 has now turned into resistance now that Bitcoin (BTC) is trading below that level.
Bitcoin Close To Its Ceiling Price
The economist has made it clear that Bitcoin's (BTC) price is now very close to the ceiling as compared to the floor price. The term ceiling is used to imply that a particular security has reached its upper limit. So based on these signals, Schiff said that the smartest move right now is to sell Bitcoin (BTC).
Schiff also made a comparison between Bitcoin (BTC) and gold during the 1999s. But he made it clear that it is highly unlikely for Bitcoin (BTC) to follow the same path as gold.
If we look at Bitcoin's (BTC) price analysis, it is trading near $16860, which is around 0.15% higher than the previous day.
Similarly, the 20 SMA (daily) is also at a distance from the recent red candle, which is an indication that a hike is very limited. As for the RSI reading, it is around 47, which is a little bearish or neutral at best but not bullish at all.
Another angle suggests that Bitcoin (BTC) has followed supper upper candle ticks which means that there's a chance that Bitcoin could witness another surge.
When we compare Schiff with the economic and geopolitical events that are lined up for 2023, it makes sense to play it safe. But the
investors who are willing to take the risk are usually the ones who get to gain the most as well. So at the end of the day, Bitcoin (BTC) is a game of nerves and risk-reward ratio.