Bitcoin price analysis: BTC/USD pressured down, and Barclays experts know why
|- Barclays thinks that Bitcoin is like a contagious disease.
- BTC/USD is stable under $7,000 threshold.
Bitcoin stays below $7,000 as bearish sentiments dominate the cryptocurrency markets. While experts and analysts all over the world try to understand the nature of this asset class, Barclays analysts come up with an ingenious model that compares Bitcoin with an epidemic.
“As more of the population become asset holders, the share of the population available to become new buyers -- the potential ‘host’ population -- falls, while the share of the population that are potential sellers (‘recoveries’) increases. Eventually, this leads to a plateauing of prices, and progressively, as random shocks to the larger supply population push up the ratio of sellers to buyers, prices begin to fall. That induces speculative selling pressure as price declines are projected forward exponentially,” Joseph Abate from Barclays explained in a note to clients.
Bitcoin technical picture
BTC/USD is staying close to $6,700, mostly unchanged from early Asian hours. The near-term resistance is created by $6,800 area, with both 50 and 100-EMA (hourly interval) clustered around that level. Once it is cleared, the recovery may be extended to $6,900, $7,000 and $7,174 (Monday's high). On the downside, the support is seen at $6,600 with psychological $6,000 to follow.
BTC/USD, the hourly chart
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