FX.co ★ Bitcoin analysis for 06/07/2018

The head of the Bank for International Settlements (BIS) maintains his critical position regarding cryptocurrencies, saying that "they can not take over the function of money," reports BIS.

Speaking to the Swiss newspaper, published subsequently by the BIS itself, general manager Agustin Carstens warned young people about "trying to create money", talking about Bitcoin mining: "Those who have the greatest motivation in the system of these so-called cryptocurrencies are those who produce assets - miners ... This motivation, however, is not compatible with maximizing the usability of money. [...] Cryptocurrencies do not satisfy any of the three destinies of money. They are neither a good means of payment nor a good unit of account, nor are they suitable as a means of value storage. They drastically fail in each of these cases".

BIS provoked outrage when he published an article about cryptocurrencies in June. The mainstream media widely reported about very suspicious views about this phenomenon compared to the fiduciary currency. In addition to the same fears about the possibility of crypto functioning as an article, among other controversial statements, he expressed concern that mass adoption of cryptocurrencies could "stop the Internet".

Continuing the statement, Carstens, who himself repeatedly appeared as a cryptocurrency bear, said that they would clearly not have a happy ending: "[...] There is no need to wrap the bush in this matter. Let us not forget that central banks have been supplying electronic means of payment for decades".

It is worth to notice, that this negative point of view is complete opposition to the view of Elon Musk, John McAfee, Winklevoss twins or other prominent businessmen from all over the world, so now it is only a word battle, mine versus yours. Time will tell who was right in this case.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The bull camp was too weak to break out above the $6,809 resistance and now the price is slowly falling down again. The nearest intraday support is seen at the level of $6,400, but it might be easily violated and the price might head lower towards the level of $6,209 (weekly pivot). A Friday daily candle close below this level will not be a positive sign for bulls. The key support remains at the level of $5,742.