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In the past Warren Buffet has been known to have doubts about Bitcoin and this time proves to be no different. Buffet spoke on crypto at the Berkshire Hathaway Annual Shareholder Meeting last Saturday in relation to the growing mainstream adoption of it and said, “If you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything.” Buffet added that nothing could make him buy any crypto at any price. Buffet’s arguments stem around digital assets offering no tangible value. Buffet stated that assets such as farmland and apartments are tangible assets and if someone offered him 1% interest in all farmland or apartment complexes in the country he would write a $25 billion check on the spot because these things produce rent and food, while Bitcoin produces nothing.
At the time of writing, Bitcoin is priced at about $38.4k and once again the price is still very close to where it was last week. In last week’s article I mentioned the midpoint of the range at $39.3k being an area to watch and that we did not want to see a daily close under this level. Since then we have indeed had a daily close under the midpoint and while price has not completely nuked, it has drifted slightly continuing its downtrend. While I am not sure if the midpoint is a hard line in the sand or a “do or die” type of area, I do think it is still important to observe how price reacts around this level.
Bitcoin reclaims the midpoint area at $39k and then pushes back up to the $44k resistance area.
Bitcoin does not reclaim the midpoint area and I believe that it is possible for us to reach the range support at $34k or lower.
At the time of writing, Ethereum is priced at about $2800 and has continued a downtrend similar to that of Bitcoin. Last week I mentioned that it seemed like Ethereum was giving a bearish retest of the $3k level and also said that if this level was not reclaimed I would expect $2.7k to act as support. Since then ETH has made a low of exactly $2716 and that has held as support so far. Unless we are able to break this down trendline on the daily timeframe, I would expect continuation of the downtrend to either the $2.3k area or $1.9k area next.
Ethereum reclaims the $3k level and pushes back up to the $3.2 – $3.6k level
Ethereum loses the $2.7k area and we look for either $2.3k or the $1.9k level to act as support.
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