Bitcoin price motionless below $5,600: ‘Dr. Doom’ says Bitcoin belongs at zero

The market has finally stabilized after the sudden drop that came as a surprise to many in the industry. However, the big question for the market is “what next?” Will there be a correction above $6,000? Or the investors will have to settle for consolidation below the broken support at $6,000.

Meanwhile, Bitcoin is trading at $5,509 after dropping 1.2% on Friday. The trading on Thursday saw a reversal below the lows on Wednesday. Bitcoin price brief sharp declines found refuge at $5,200 before bouncing back above $5,500.  Since then the price is stable and shows low volatility levels as observed by the applied Bollinger bands indicator.

The price is also trading between the moving average support and resistance with the 50 SMA offering support at $5,500 while the longer term 100 SMA limiting gains at $5,662.16 (15-minutes range). The MACD can be seen hugging the mean line after recovering from the slide to -52.46 yesterday. The RSI, on the other hand, is revamping the trend to face upwards, although since Wednesday, it has been up and down between the overbought and the oversold levels.

The popular Bitcoin critic, Nouriel Roubini commonly referred to as “Dr. Doom” has been vocal due to the sharp declines on Wednesday. Dr. Doom expressed his excitement for the recent crash saying that the days for digital assets are numbered that that soon they will be valueless. Roubini stated:

“I could gloat about Bitcoin collapsing 10% in a day to $5,700. But that is still some way to zero where Bitcoin belongs. Actually, since Bitcoin is The Mother of All Toxic Pollutions & Environmental Disasters, its true fair value is highly negative with the right externality tax.”

BTC/USD 15' chart