Search ForexCrunch
  • The CEO of Block.One explained why Bitcoin would never serve as money.
  • BTC/USD consolidates losses on $9,600, which serves as initial support.

Bitcoin (BTC) has been hovering around $9,600 for the better part of the Asian session. The first digital coin lost over 9% of its value during a couple of hours on Wednesday and touched $9,309 low before recovering towards $9,600. At the time of writing, BTC/USD is down over 5% on a day-to-day basis and mostly unchanged since the beginning of the day. Bitcoin’s average daily trading volume settled at $47 billion, while the market share increased to 62.6%.

Bitcoin is not money, it is gold

Meanwhile, the co-founder and CEO of Block.One Brendan Blumer (@BrendanBlumer) pointed out that Bitcoin is not intended to be used as everyday money. On the contrary, it is an investment vehicle like gold or equities. In an answer to Peter Schiff, he said:

#Bitcoin isn’t money and never will be – its the next generation of #gold and will overtake it in aggregate value the next two decades. Local currencies are made for spending and are tax optimized for it. Do you spend your gold at the supermarket? Your equities?

He referred to Schiff’s criticism about Bitcoin flaws and its inability to function as a medium of exchange. Notably, Peter Schiff is a well-known proponent of a gold standard and a vocal Bitcoin critic who often expresses his critical views on Twitter and attract sarcastic comments from the Bitcoin community.

BTC/USD: Technical picture

BTC/USD is hovering around the local support created by $9,600. This are served as a strong resistance before it was broken and flipped to support. If it is cleared, the sell-off may continue towards the descending trendline from February 15 high at $9,450. It is followed by SMA200 4-hour at $9,380 and the recent low of $9,300. This area is likely to stop the downside and trigger another bullish wave towards $10,000.

On the upside, the initial resistance is located on approach to $9,800. It is reinforced by SMA100 4-hour. However, the critical barrier is seen on the approach to psychological $10,000. This resistance includes the downside trendline from February 13 high and SMA50 4-hour. Once it is out of the way, the upside is likely to gain traction with the next focus on $10,200.

BTC/USD 4-hour chart

 

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.