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article imageBuffet on bitcoin and bitcoin's move above $5,800

By Ken Hanly     May 4, 2019 in Business
Bitcoin has managed to attain a high of over $5,800 as it reaches up toward $5,900 and perhaps on to $6,000 but it has dropped back considerably to below $5,750 later in the day.
Dalmas Ngetich wrote an analysis of bitcoin (BTC) price movements earlier today and also noted recent remarks by Warren Buffet the investor on bitcoin.
Buffet on bitcoin
Among other prize statements Buffet had earlier called bitcoin rat poison squared but now he has described the cryptocoin as a gambling device. Yet the coin is now testing resistance at $6,000 and managed to add 6.3 percent last week. Warren Buffet, one of the wealthiest persons in the world along with several other billionaires is dismissive of bitcoin and other cryptocoins. He says now that it is a gambling device that has produced nothing and has been laden with controversies.
In talking to CNBC Buffet said: “It’s a gambling device… there have been many frauds connected with it. There have been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything. It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me.”
Yet bitcoin has been shown to make international fund transfers cheap and nearly instantaneous. Ngetich also claims that it is evolving into a store of value, and a trusted asset that is global with no FX charges. FX charges are foreign transaction fees.
Despite what Warren claims bitcoin is a utility and gaining increasing support from government. This will increase demand Ngetich claims and will push the price beyond the $6,000 level towards $8,500.
Technical indications for bitcoin
The candlestick arrangement so far supports the bulls as the price of BTC has trended above a multi-month resistance trend line that is visible in the weekly chart. To establish a convincing bullish move prices must move conclusively above the $6,000 level but BTC is under heavy bearish pressure. Traders may sit on the sidelines worried about a possible bearish retreat until prices reach past the $6,000 level.
Ngetich's trade plan is anchored in the November 2018 bear bar. Bulls have a chance but to continue the trend up and to confirm April surges bitcoin would need to close above $6,000 with high volumes.
Present situation
24 hours ago BTC was trading at $5,735. Since then it has been as high as $5,829 and as low as $5,529 At 19:50 Central Daylight Time bitcoin had fallen back to just $5,746 but still $11 above its open. Perhaps bitcoin will experience a period of more or less sideways consolidation before it tests the $6,000 level again. The vast majority of the top twenty cryptocoins are losing value at present. The present price of bitcoin and the top twenty coins can be found here.
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