Bitcoin analysis for 08/05/2018

Warren Buffett: Bitcoin is a rat poison.

Billionaire Warren Buffett once again trashed the cryptocurrencies at Berkshire Hathaway's annual shareholder's meeting on May 5. Buffett repeated his earlier warning that "cryptocurrencies would end badly." Earlier he said that buying cryptocurrencies is not a real investment, but it is only speculative gambling. He also said that in contrast to real estate or companies, virtual currencies have no value and only attract "charlatans": "If you buy something like Bitcoin or other cryptocurrencies, you do not really have anything that has produced something. You just hope that the next guy pays more." said Buffett. He even went a step further by calling Bitcoin "rat poison squared". Buffett's longtime associate billionaire Charlie Munger joined Bitcoin critics, comparing the most capitalized cryptocurrency to turd trade by people with dementia: "I like cryptocurren even less than Warren ... it's just dumbness for me and the Bitcoin trade department is like someone who deals with a turd and you are left out" Munger supposedly said. Buffett repeated his scathing attempts to overthrow digital currencies. In January 2018, he said that cryptocurrencies would "end badly": "In terms of cryptocurrencies, in general, I can say with certainty that they will end badly".

While Warren Buffett and Charlie Munger remain the public critic of cryptocurrencies, the younger generation of technological billionaires such as Twitter CEO, Jack Dorsey, co-owner Paypal, Peter Thiel, and the technological capitalist Tim Draper, are unconvinced in the belief that Bitcoin is here to stay on always and displace all other currencies. In fact, Draper is so confident in the crypto future that he set the price of bitcoin in the amount of USD 250,000 for 2022. Draper, an early investor in companies such as Skype, Tesla and Hotmail, claims that Bitcoin will be larger than all three connected because it is a revolution greater than the Internet:"It's bigger than the Internet," said Draper. "It is larger than the iron age, a renaissance. It is bigger than the industrial revolution. It affects the whole world in a faster and more widespread way than you ever imagined. "

Let's now take a look at the Bitcoin technical picture at the H4 time frame. There is not much movement on the market as the price is hovering around the weekly pivot at the level of $9,409 after the market has completed five wave advance to the upside at the level of $9,913. Currently, the corrective pull-back cycle in developing. The price has broken below the weekly pivot at the level of $9,409 already and now is heading towards another support at the level of $9,050 ($9,000). The corrective cycle might be deep and can extend towards the levels of $8,608 or $8,355 or even $8,132. The overall impulsive scenario invalidation level is at $6,402.

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