According to U.Today, Bitcoin recently underwent a flash crash, dropping to just above the $61,000 mark. This price is equivalent to approximately 26 ounces of gold, according to Bitcoin critic Peter Schiff. Schiff pointed out that two and a half years ago, one Bitcoin was equivalent to 37 ounces of gold. He views this 30% decrease as a clear indication of Bitcoin entering a bear market, especially when compared to the traditional safe-haven asset, gold.
Schiff's past suggestions to choose gold over Bitcoin when the latter was trading below the $20,000 level have faced criticism. This is particularly true as Bitcoin's price, despite its volatility, is currently around the $65,000 level. Presently, the price of the digital gold is hovering above the crucial support level represented by the 200-day moving average, near $49,800. If Bitcoin's price remains above this line, it could suggest continued confidence among investors and a potential rebound.
Resistance is seen around the $67,300 level. If this level is broken, it could negate the bearish sentiment and indicate a possible bullish reversal. In terms of growth scenarios, consolidation above the $61,000 level followed by a sustained push above the $67,300 resistance could see Bitcoin regain its upward momentum. Such a move would be key to challenging the bearish perspective and may suggest that Bitcoin's price in gold terms is not the only indicator of its market health.
However, the comparison between Bitcoin and gold is more intricate than it may seem, as both assets serve different functions and respond differently to the market. Gold is more of a traditional safe haven asset, while Bitcoin offers more risk exposure and acts as a digital store of value.