Bitcoin rises above negative news in the market to stay above $4,000

The crypto market started the week with Bitcoin making incredible gains above $4,000. However, the news in the market starting with comments by one of the members of the governing council of the European Central Bank who said that cryptocurrencies are nothing but a fairy tale story. Mr. Harrison said that the investor s in the market need protection owing to the fact the assets could be used to facilitate illegal activities. He also said that the cryptocurrency is a threat to the stability of the financial system citing the growing link between the two assets.

In other news, Israel National Economic Council Chair is reported to have refuted Bitcoin intrinsic efficiency and even made a prediction that the virtual asset is bound to disappear. The economist, Avi Simhon was reported by Cointelegraph to have made the comments during the just concluded Israel Bitcoin Summit held Tel Aviv University on January 8.

He reckoned that if Bitcoin was to become either a national or global currency, it will require “trillions of dollars of actual cost in energy,” in comparison to the current fiat system.

Amid all these negative sentiments in the market, Bitcoin has managed to control the drop limiting declines around $4,000. This is not saying that the asset has not declined considering that the weekend bullish trend could not break above $4,100 resulting in a drop that has been supported above $3,900. In fact, the bullish flag pattern that continues to form is steadily nearing a breakout. Bitcoin is primed for a move towards $4,100 and could eventually test $4,200 in the medium-term.

BTC/USD 1-hour chart