The recent sharp decline in the value of Bitcoin (BTC) might be the beginning of a bearish move towards its key support level. Early Tuesday morning, the value of Bitcoin (BTC) declined significantly and lost more than 4.5 percent of its value.
Bitcoin (BTC) broke below is long support level at the $6,500 mark and traded below the $6,300 level. Nevertheless, the $6k now acts as a major support for the digital currency.
Bitcoin (BTC) started its downward movement after it failed to capitalize on its move on Monday. On Monday, Bitcoin (BTC) was unable to make a move over the vital 10-week EMA resistance of $6,998. The technical indicator is already in favor of the bears, adding credibility to the long-term bearish setup.
In addition, the recent huge dump in the equity markets may not go well for Bitcoin (BTC). This is because Bitcoin (BTC) is still being seen as a risk asset. As such, Bitcoin (BTC) is eyeing the $6k mark. With more bearish pressure, it might decline below that support level.
Another factor that could cause the value of the coin to decline towards its support level is the recent comment of Nouriel Roubini.
Nouriel Roubini Says Blockchain Is Overhyped and Bitcoin (BTC) is the Mother of All Scam
Nouriel Roubini is a global economist and he is one of those that predicted the 2008 financial crisis. Roubini has been making warnings about digital currencies and he’s making sure the US senator don’t miss it. The global economist recently warned against the several aspects of the new digital currency class. He sounded this alarm on Thursday during a congregational hearing on Capitol Hill.
Roubini told the US Senate Committee on Banking, Housing and Community Affairs at a hearing that “cryptocurrency is the mother of all bubbles and scam.” Roubini said that the first warning sign came when Bitcoin (BTC) tested the $20k mark late last year.
The financial expert said almost everyone he met between Thanksgiving and Christmas last year asked him if they should invest in digital currencies. Roubini said “Scammers, criminals, and insider whales tapped into the ‘fear of missing out’ of clueless retail investors.” He said they took the clueless investors for a ride with pump and dump schemes for scammy assets at the peak and then went into a bust and crash.
Since Bitcoin (BTC) tested its all-time high, it has lost over 65% of its value. The entire market cap of the digital currency market has also reduced by 60%.
Roubini also attacked the blockchain technology. He said blockchain is most hyped technology ever. He said the technology is “at least useful” but it is the most over-hyped technology in the history of humanity. He said blockchain technology is nothing better than a glorified database or spreadsheet.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is changing hands at $6,294, which is the range it fell to after the massive blow yesterday morning. Bitcoin (BTC) currently has a market cap of $109.01 billion with a trading volume of $4.40 billion over the past twenty-four hours.