Bank of America Merrill Lynch: Bitcoin, the Biggest Bubble in History is Resembling Precedent Bubbles.
Cointime (April 10) — Bitcoin’s value soared to $20,000 last year. Since then, it has fallen by 65%. What is Bitcoin's future direction?
According to Bank of America Merrill Lynch’s data, the movement of Bitcoin echoed other financial bubbles in history. The data showed Bitcoin’s value following the pattern of the Tulips bubble and South Sea Company Bubble.
Bank of America’s analyst, Michael Harnett, published a report on Monday. Harnett believed Bitcoin is reenacting history’s greatest bubbles and it is approaching its downfall.
One cannot deny this quarter was the worst cryptocurrency market had performed in its history.
At the end of March, Bitcoin met the death cross.
According to CNBC,
“The term is used to describe a crossover of the 50-day moving average and the longer-term 200-day moving average. More specifically, it's used to illustrate when the 50-day moving average moves below the 200-day moving average — technicians often look at this pattern as a bearish sign of what's to come.”
Jim Luorio of TJM wrote to CNBC,
“Any time the 50-day crosses the 200-day, it should flash a warning…and when you couple that with the fact that bitcoin has been trending steadily lower since the launch of futures, I think that it is a major negative.”
However, some critics disagreed with the negative analysis.
there were some sources that suggested the Rockefeller, Rothschild, and Soros’ s family are still investing in cryptocurrency.
Brian Kelly from Fast market believed,
“Bitcoin, just like the spot FX markets, follows technicals closely, therefore these support levels gain more importance. If these levels hold, then it will confirm the uptrend from August is still valid.”
Executive editor： Angel