- Nouriel Roubini, an economics professor at New York University’s Stern School of Business, aka “Dr. Doom” expresses his doubts on Bitcoin
- Bitcoin (BTCUSD on xStation5) spiked but failed to maintain its gains
- Ethereum (ETHUSD) is getting closer to leave a triangle formation
Volatility on Bitcoin was quite wild on Wednesday afternoon as the price spiked and slumped thereafter. Either way the price managed to establish its fresh all-time high (on xStation5 platform) at circa $7860. On the other hand we got another dismal comments concerning Bitcoin this time from Nouriel Roubini who is better known as “Dr. Doom”. In a interview with Business Insider Poland he voiced bearish views on the cryptocurrency calling the ongoing price gains “a gigantic speculative bubble”. Let us recall that Roubini earned the nickname “Dr. Doom” for predicting the 2008 financial crisis. He also added that while blockchain technology is promising, Bitcoin lacks “serious” payment and capital storage methods and that there is no fundamental reason for current price levels.
One may conclude that he joined a chorus of prominent people who are skeptic with regard to the future of Bitcoin. Let’s remind that earlier JPMorgan CEO Jamie Dimon called Bitcoin “a fraud” whereas the iconic investors Warren Buffet said Bitcoin is experiencing “a real bubble”. Finally Roubini said Bitcoin is also used by criminals for their shady business and for that reason more and more countries will start to make virtual currencies exchanges illegal like China did.
A technical view on Bitcoin hasn’t changed significantly lately as the price has failed to break an upper limit of an ascending channel and then the price has withdrawn. Having said that one cannot rule out a deeper pullback once the price breaks below $7060. If so, a move toward a lower boundary of the mentioned channel could be in the offing.
Looking beyond Bitcoin one cannot omit Ethereum as the price is slowly coming to an end of the triangle pattern. Notice that this formation has acted as a relevant support or resistance, hence when the price leaves it, it could encourage more traders to join the market. Having assumed a breakout of an upper limit to the upside a swing toward $390 seems to be reasonable.