Bitcoin price analysis: BTC/USD drops below $7,400; UBS says Bitcoin is too unstable to become a mainstream asset
- BTC/USD goes below 38.2% Fibo retracement. Again.
- UBS doesn't believe in Bitcoin as a means of payment.
Bitcoin is changing hands at $7,360, down 4% on a daily basis and 2% since the beginning of Friday. The top digital currency resumed the downside after a short period of consolidation as a strong technical resistance area above $7,600 handle prove a hard nut to crack for Bitcoin bulls.
The fundamental background remains mixed; however the market seems to be driven by speculative positioning and technical factors.
Traditional financial institutions often adopt aggressive approach cryptocurrencies but continue researching this phenomenon and supplying the market with statistical and analytical data. Thus, Zurich-based UBS suggests that Bitcoin price must hit $213,000 before it can compete with USD in terms of money supply.
"Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class," the bank says as cited by Bloomberg.
Bitcoin's technical picture
BTC/USD went below 38.2% Fibo retracement level at $7,370 during early Asian hours. The breakthrough may intensify the sell-off and take the price towards the next important handle $7,000. On the upside, the coin must recover above the sloping trendline (currently at $7,550) to get a chance for further growth.
BTC/USD, a daily chart
Author
Tanya Abrosimova
Independent Analyst
