Peter Schiff, chief economist and global strategist at Europac, has stated that Bitcoin (BTC) price may have found support at $61,000.
As Bitcoin price extended May’s losses in the first four days of this month, Schiff argued that the flagship coin may have found short-term support around its February low as of June 4.
“Bitcoin found some short-term support around $61,000. That’s slightly above the February low of just under $60,000. It makes sense that there would be some initial support there. So far, it’s bounced over $2,000 off that low. Let’s see how long it lasts,” Schiff noted in an X post.
Notably, the Bitcoin skeptic had previously cautioned traders of a potential crypto panic selling catalyzed by a possible stock market correction. However, Schiff highlighted that BTC price could mirror its post-February rally, which peaked in early May at about $82,000.
Bitcoin price outlook amid whale sell-off
Bitcoin price has experienced heightened selling pressure amid significant liquidations in the U.S. spot exchange-traded funds (ETFs), as Finbold reported. Notably, the ongoing stock market rally fueled by Artificial Intelligence (AI) has undermined overall BTC demand from institutional investors, despite supportive fundamentals.
From a technical analysis standpoint, BTC’s price could be following a similar pattern to its post-2021 bull rally. Precisely, BTC price could be forming a falling wedge over the past two years, similar to the descending triangle after the 2021 bull rally. Historically, a falling wedge is a bullish reversal pattern, especially if the upper boundary is breached.
Following the recent BTC price drop, trading at approximately $62,797 at the time of publication, it could be at the apex of a falling wedge consolidation, which aligns with Schiff’s support thesis. However, if the lower boundary of the falling wedge is breached, BTC price may experience further sell-off, potentially below $60,000, as Finbold explained.
