Bank of Spain lambasts Bitcoin amid strong recovery on the cryptocurrency market
|- $4,000 is still unconquered, but the bulls won’t give up.
- Carlos Colesa says Bitcoin is useless.
Bitcoin spiked to $3,994 during early Asian hours and even touched $4,000 at some exchanges. While the coin retraced to $3,884 by the time of writing, it is still 5% higher from this time on Monday and 7% since the beginning of the week.
A sustainable move above $3,700 handle set the bullish ball rolling and put $4,000 back in focus. This is an intense psychological barrier, but once it is cleared, the upside may be extended towards the highest level of the year at $4,127 and to $4,200.
On the downside, a short-term correction from the overbought territory may take the coin to the former resistance $3,700. Now this area serves as strong support with SMA50 (1-hour and SMA10 4-hour located right below). The next critical barrier is created by a confluence of technical indicators at $3,600 (SMA200, 1-hour, DMA50, SMA50, 4-hour).
Meanwhile, another central banker came out to the fore with critical comments about Bitcoin. Carlos Colesa a Deputy General Director for financial innovations in the Bank of Spain said that Bitcoin could not be regarded as a solution for the problems of existing payment systems.
He pointed out to a relatively small number of daily transactions as compared to traditional systems, and a slow process of transaction confirmations. He believes that the Proof of Work concept where miners have to approve transactions have more drawbacks than benefits.
“It is unlikely that Bitcoin in its current modification will have any significant impact on the finance sector as an alternative to traditional payment systems,” he concluded.
BTC/USD, 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.