Bitcoin (BTC) has reached its highest level since early March during the weekend but the rise was on the verge of reaching the $10,000 psychological level, triggering a sharp correction. The BTC/USD broke below $9,600 in the early hours of Monday’s Asian session and touched a low of $9,220 as Warren Buffett described BTC as “probably rat poison squared”.
Bitcoin (BTC) Price Analysis – The sentiment is bearish
However, now Bitcoin (BTC) is trading above $9,400, recording only a 1.90% loss in the last 24 hours, but the bearish momentum is still gaining traction.
The cryptocurrency has lost more than 7% from its peak of $9,948, although the reasons behind the decline are mostly technical and speculative.
The resistance at the $10,000 level is reinforced by the DMA of 200, which makes it more difficult to break. If the bulls manage to pass this level, the BTC/USD will rush to the $10,400 and then it will most likely move to the next psychological control in the $11,000 zone.
On the downside, the first support line comes in at $9,000, where there is a psychological level along with a short-term uptrend line. Then wait for 8,900 (DMA of 100). A sustainable move below this level will focus on the $8,000.
Bitcoin (BTC) decline: Buffet described Bitcoin (BTC) as “probably rat poison squared” and Japanese announced stricter crypto regulations
First, the Japanese crypto regulators announced that they plan on introducing much stricter crypto regulations aiming the cryptocurrency exchanges, in a measure which apparently seek to protects crypto traders from crypto-related cyber attacks. More about this, you can read here.
As this wasn’t enough, Warren Buffett, the renowned investors and markets’ “guru”, called Bitcoin “rat poison,” speaking on CNBC before the annual Berkshire Hathaway meeting.
Apparently, Bill Gates shares Buffet’s point of view.
Thus, Bitcoin (BTC) dropped to $9,220 during the Asian trading session when the Warren Buffett’s interview occurred. However, BTC recovered slightly to above $9,400 but, be aware, the bearish momentum is still gaining traction. Most probably, BTC will fluctuate a lot in the upcoming period but, as said above, if the bulls handle rising BTC/USD above $10,000, then BTC will rise even further to $10,400 and $11,000.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.