Tanya Abrosimova
Independent Analyst
- Joe Davis devalues Bitcoin as a currency and a store of value.
- BTC/USD needs to recover above $8,000 as soon as possible to mitigate downside pressure.
Bitcoin's price action is to the downside today. Digital currency No. 1 lost about 5% of its value in the recent 24 hours, retracing from $8,400 on Tuesday to trade at $7,912. at the time of writing. The coin has been sliding for the third day in a row; its market value dropped to $135B, the lowest since April 18.
Meanwhile, Joe Davis, a senior economist of the Vanguard Group, is another institutional guy who doesn't believe in Bitcoin as a currency or investment tool. He says that Bitcoin lacks the features of a currency as a means of payment, while high volatility makes it a bad store of value.
“Over the past few months, I’ve gotten this question more than any other,” he wrote. “As for bitcoin the currency? I see a decent probability that its price goes to zero.”
Bitcoin's technical picture
Looking more broadly on a daily chart BTC/USD stays firmly below 50-DMA that coisides with 38.2% Fibo at $8,425. This bearish signal is intensified by the price diving under $8,000. Once the breakthrough is confirmed, the focus will shift to the next support seen at $7,683 (23.6% Fibo) and at $7,042 (the upside trendline). On the upside, a sustainable move above $8,420/50 might attract more buying interest with the next target at $8,855 (100-DMA)
BTC/USD, the daily chart
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