January 16, 2021

WELTRADE Blog | Peter Schiff - The sharp rise in the price of bitcoin at the end of last week was caused by coordinated actions

Bitcoin lost some of the positions won at the end of last week, gaining a foothold below the psychological level 10,000.

German Federal Parliament publisheda statement stating that bitcoin and other cryptocurrencies are not real money, but only perform certain functions of money. The statement notes that the volume of payments in cryptocurrencies is far from the volume of payments in fiat currencies. It was also noted that cryptocurrencies cannot act as a means of accumulation due to their excessive volatility.

Well-known cryptocurrency market commentator andgold investor Peter Schiff suggested that the sharp rise in the price of bitcoin at the end of last week was due to the coordinated actions of major players, and not the news that blockchain legislation or another fundamental factor could be adopted in China.

WELTRADE Blog | Peter Schiff - The sharp rise in the price of bitcoin at the end of last week was caused by coordinated actions

According to Schiff, large players deliberately provoked a price increase in order to subsequently exit positions at a higher price.

Meanwhile, the number of search queries on Google (NASDAQ: GOOGL) regarding bitcoin reached a 3-month high. It is noteworthy that most of the searches are in Africa.

According to technical analysis, consolidation above 10,000 will open the way to 10,450. In the case of consolidation below 9100, a decline to 8500 is likely.

Vasily Barsukov (Chief Dealer WELTRADE)