- Bitcoin has recovered from the Asian low.
- Lou Kerner believes that Bitcoin will replace gold as a store of value.
Bitcoin has recovered from the Asian low $4,134 to trade at $4,238 at the time of writing. Despite the recovery, the digital coin No.1 is still 7% lower since this time on Thursday, trading within a clear short-term bearish trend.
Meanwhile, CryptoOracle partner Lou Kerner is sure that the cryptocurrency market volatility is a natural. The current collapse is not the worst thing in Bitcoins history that once lost 70% of its value overnight.
Despite the crash, the expert believes that Bitcoin will overtake gold as a store of value eventually.
“Crypto has been so weak because most of it there’s no underlying value outside of confidence,” Kerner said. “[But] bitcoin, itself, we think is going to replace gold eventually. Gold is an $8 trillion thing.”
“I think it’s a store of value. I think it’s the greatest store of value ever created,” he added. “It should surpass gold over time. It won’t happen overnight,” he said in the interview with CNBC.
Bitcoin’s technical picture
From a short-term perspective. BTC/USD is capped by $4,450 handle strengthened by SMA50 (1-hour). Once it is cleared, the recovery may be extended towards $4,600-$4,640 congestion zone that stopped the coin on two previous recovery attempts.
On the downside, a sustainable movement under the Asian low will expose $4,050 and $4,000, Let’s hope that buyers will show up around that area, otherwise Bitcoin will set to explore how deep the rabbit hole is.
BTC/USD, 1-hour chart
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