FX.co ★ Bitcoin analysis for 12/01/2018

Immediately after James Dimon admitted that he had made a mistake by calling the crypto-currency market a fraud, his successor appeared - a well-known investor and one of the richest people in the world - Warren Buffet. Already in 2012, he criticized Bitcoin, saying he would not have any value. In October 2017, he publicly announced that it was a speculative bubble that would break with a bang. His comments now appear when the biggest screamers have decided to duck their foreheads. "I have enough problems with things that I think I know something (...) Why should I occupy a long or short position on something that I do not know?" - said the investor, making it clear that he is not an expert in this field.

Binance exchange general director Zhao Changpeng confirmed that Buffett's words should not be taken too seriously: "I think he knows exchange trades and capital investments well, but I do not think he understands Bitcoin at all. I still respect many elements of his knowledge, but I think that in matters of cryptocurrency, he makes a big mistake."

So, maybe in the future Warren Buffet will acknowledge the mistake as well? TIme will tell.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The price is testing the level lower triangle pattern trend line around the level of $13,200, just above the local support at the level of $12,462. If this level is violated, then the market will test the level of $12,020 and possibly $11,152. The last one is the key level for bulls as any breakout lower will likely extend the sell-off to the level of $9,000. On the other hand, the nearest resistance is seen at the level of $15,553 as the corrective pattern unfolds.