Bitcoin remains weak as the pressure to break the $30,000 support grows by the day. Hamish Douglass, Magellan’s billionaire co-founder, slams Bitcoin and the cryptocurrency market.
Bitcoin tested the $30,000 level again yesterday after Hamish Douglass, the head of one of the largest funds in the world, slammed the cryptocurrency market. He referred to the cryptocurrency investors as cult followers and that the market is irrational.
There is no getting away from the fact that bitcoin has had a terrible second quarter this year. Its value has halved since April, and now the technical picture reveals a possible head and shoulders formation.
Bitcoin’s Technical Picture
The technical analysis illustrates a head and shoulders pattern that points to much lower levels. This is a reversal pattern, whereby the measured move is calculated by measuring the distance from the highest point in the pattern to the neckline. By projecting from there, the measured move points to zero, supporting Magellan’s boss statement.
Bitcoin’s downward slide has triggered similar weakness in other cryptocurrencies. Some have suffered an even worse fate, such as Dogecoin, down over 70% from its highs.
Naturally, some investors are questioning the technology behind digital assets. Bitcoin has been around for several years now, as has the blockchain, but mass adoption lags, with many voices questioning the need for it.
Bitcoin has been the victim of the Chinese clampdown on miners and fear of regulation in the developed world. The main cryptocurrencies have lost ground since the authorities there declared open season in efforts to halt the pollution that cryptomining causes.
Looking ahead, Bitcoin investors are holding out for the recent consolidation to end. Bitcoin has been consolidating in what seems to be the right shoulder of a head and shoulders formation for more than two months now. Only a move above $40,000 could invalidate the pattern, but until then, the sentiment remains bearish.