- World’s largest hedge fund calls Bitcoin a bubble
- BTCUSD back under 4000
- Slight weakness seen across all crypto markets
Ray Dalio, the billionaire founder of the world’s largest hedge fund Bridgewater Associates is the latest high-profile financier to weigh in on cryptocurrencies. After JP Morgan CEO Jamie Dimon labelled bitcoin a fraud last week the market went into a tailspin, plummeting some 40% from it all-time high to back below the $3000 level. Whilst it was more likely a case of profit taking and a reaction to the Chinese hostility towards crypto that caused the declines, Dimon’s comments did coincide with around the time the sell-off gathered momentum. Along these lines it may be worth keeping an eye on Bitcoin in the coming hours to see if we do get any downside following these Dalio comments.
Bitcoin has staged an impressive recovery in recent sessions and is now sitting at a potentially pivotal level. Source: xStation
In terms of technical analysis, the impressive recovery seen since Friday’s low is now at something of a crossroads. Price has ran into prior support around 4075 in recent trade and this now appears to be providing some resistance. A clean break above here would be seen as a positive development for price and would open the way for further upside back towards $5000. However, a failure to gain traction above this level would keep open the possibility that the sell-off is not done yet and should the market fall back under 3760 then a retest of 3000 could occur.
We earlier commented on plans from Estonia to launch its own cryptocurrency and took a closer look at the Litecoin (LTCUSD on xStation) market.