Buffett Hits Bitcoin, But Cryptos Resist

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by | 8th May 2018 | 0 comments

The Oracle of Omaha, Warren Buffett called Bitcoin “rat poison squared” on Monday in an interview with CNBC. BTC/USD fell to test the 9,160.85.

Bitcoin opened the week with a negative note after Buffett confronted cryptocurrencies investors during the weekend and Monday with the notion that Bitcoin is a bubble.

Following a question about the Goldman Sachs new cryptocurrency trading venture, Buffett stated that he “would be very surprised if their top partners at Goldman are selling their Goldman stock and buying Bitcoin.”

Another bad news for crypto assets came from PayPal Chief Executive Office Dan Schulman at TheStreet’s Investing Boot Camp this weekend. Schulman affirmed that although he is a big supporter of the blockchain technology, the market shouldn’t expect a cryptocurrency trading platform anytime soon in his organization.

Neither PayPal or Venmo don’t offer cryptocurrency trading services. They allow people to work with cryptos, but the users have to change for regular currencies before depositing assets in PayPal or Venmo. The reason? According to Schulman, “We don’t want to be a part of consumers losing large amounts of money,”

Bitcoin drama weekend looms on the pair, but investors believe it

BTC/USD closed on Monday its second negative day in a row as the pair fell to the dynamic support level at 9,160.85. Then, the unit bounced back from this level to close around 9,353.00.

The pair is now trading around 9.400.00, 0.60% positive on the day. If the cross breaks below the 9,160.00, the crypto will test the 8,800, May 1 low, and 8,660, April 25 and 26 lows.

To the upside, the pair should break above the 9,770 and 9,880 before thinking for further gains. The 10,000 is still on the sight of investors.

Ethereum bounces back at 700.00, back to 760.00

ETH/USD Daily Chart - 08-05-18

Ethereum, the second cryptocurrency by market capitalization, fell hard on Monday following Buffett’s remarks on cryptos over the weekend. The ETH/USD fell from 790.00 to test 700.00 support. However, the pair managed to bounce back hard too.

ETH/USD found buying interest around the 700.00 level, and it jumped back hard to trade at 760.00. Still negative on Monday, but the feeling for the bulls was a victory.

The pair is opened Tuesday with gains and it is currently trading 1.60% positive around 765.00. Indicators are pointing to the upside.

On the other hand, the 20-day moving average confirmed its cross above the 200-day MA. Now it is supporting the bullish movement.

If the pair manages to trade back above the 800.00 area, it will find next resistances at 830.00, 900.00 and then the 1,000 significant mark.

To the downside, if the pair turns back and falls below the 700.00 level, it will find next supports at 665.00, 640.00, and 600.00. Then, 557.00 is the most critical price down under.

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