Bitcoin ready to crash to $1,000 – Peter Schiff

• Peter Schiff explains, why BTC/USD may collapse soon.
• BTC/USD is testing the neckline of the head-and-shoulder pattern.

A well-known bitcoin critic Peter Schiff came up with another apocalyptical forecast for the first cryptocurrency. He believes that the technical picture implies a sharp sell-off towards as low as $1,000.  

“For those who can’t visualize the potential head-and-shoulders top in Bitcoin, maybe a picture will help. Very ominous if the pattern completes,” he wrote on Twitter.  

Schiff noted that the so-called “head-and-shoulders” was a strong bearish signal that bodes ill for bitcoin bulls. He also added a picture of his monitor to help readers to visualize it.        

This is the second time when Schiff draws attention to this pattern. On October 20, he wrote that bitcoin chart looked horrible as thee price was completing the right shoulder.  

If Schiff is right, then the price is now testing the neckline, A sustainable move below this barrier may trigger a sharp sell-off towards SMA50 (Simple Moving Average) weekly at $7,150. This support is closely followed by a psychological $7,000. Once it is out of the way, $5,000 may become a possibility with SMA200 weekly located right below this barrier.

On the downside, We will need to see a sustainable move of $7,550 this handle to mitigate the bearish pressure. This resistance is created by SMA50  weekly and the above-said neckline. The next hurdle comes at $7,700 and $8,000.

BTC/USD, 1-day chart