Although Bitcoin price failed to crack the $10,000 mark and has declined since its last major bull run, the cryptocurrency is still holding on above the $9,000 price level.
The latest setback for Bitcoin stems from Berkshire Hathaway CEO Warren Buffett, who maintained his criticism of the digital asset yesterday, claiming that Bitcoin as an asset is creating nothing.
“When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along,” stated Buffett.
The negative sentiment towards cryptocurrencies was also shared by Berkshire Chairman Charlie Munger and Microsoft Co-Founder Bill Gates.
Bitcoin Staying Above $9,000 For Now
The recent price movements of BTC/USD give a good indication that Bitcoin could be staying above $9,000 for a while. The latest pullback has set a major support level at $9,000, while a resistance is held at $9,200. This is still good news for Bitcoin investors as this price is still an approximate 25% gain over the past month. Only a fall below $8,500 would put Bitcoin in bear territory.
Furthermore, Bitcoin could go on another bull run this week. There’s a trend where big price jumps usually occur during the middle of the week. The next critical point would be $9,500, but that’s a more realistic target for the end of this week.
Technical analysis indicates that Bitcoin indeed could go up this week. This is especially the case for the RSI, which shows that Bitcoin is currently in oversold territory. This may be attributed to Buffett’s latest comments that started the recent selloff.
Looking at the Technical Indicators:
- Hourly MACD — Neutral
- Hourly RSI — Bullish
- Major Resistance Level — $9,200
- Major Support Level — $9,000
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