Investing.com – Bitcoin remains under pressure, after a rapid drop to a low of $28,000 yesterday afternoon, which preceded a rally to around $29,750 in the evening, and as the cryptocurrency hesitates to rise hold above $29,000 this Friday morning.
From a technical point of view, it is important to note that the fall of yesterday afternoon gave rise to a test of the important support located around $28,650, which remains worrying although Bitcoin quickly rebounded afterwards. In addition, the cryptocurrency is also marking lower and lower highs since last night, as seen on the short-term charts.
Another worrying sign concerns the fact that Bitcoin did not benefit from yesterday’s sharp rise of 2.68%, while it is on the other hand often penalized by the falls of the US technology index, by correlation.
The risks therefore seem to be on the downside for the most important cryptocurrency in the market, which is now showing a pullback of almost 60% since its peak in November 2021. However, this does not prevent certain famous investors from continuing to show optimism. pronounced for crypto.
This is particularly the case of Bill Miller, billionaire founder and chief investment officer of the investment company Miller Value Partners, who said that he considers bitcoin (BTC) as an “insurance policy against financial catastrophes”. according to remarks reported in particular by Cointelegraph.
Bill Miller praises Bitcoin’s strengths and advises not to listen to Warren Buffett
During an episode of the “Richer, Wiser, Happier” podcast on May 24, Bill Miller gave the example of cryptocurrency as a way for people affected by conflict to still have access to financial products:
“When the United States pulled out of Afghanistan, Western Union stopped sending funds there or taking them from Afghanistan, but if you had bitcoins, you were fine. Your bitcoin is there. You can send it to anyone in the world if you have a phone.”
Miller also rebutted Warren Buffett’s recent criticism of bitcoin, including his argument that “it doesn’t produce anything” and that he “wouldn’t take” all the bitcoin in the world, even for $25.
“He said that bitcoin is a non-performing asset so he can’t value it. That’s right. ‘buy, right? So just ignore it.’
He then clarified that according to him, “the goal of investing is not to own productive assets, the goal is to make money.”
Important thresholds to monitor on Bitcoin
Finally, regarding the key thresholds that traders should keep in mind, note that a break below the $28,650 support would expose the 2022 annual low at $26,600. Then, no more major support can be spotted before the zone of the psychological threshold of $20,000.
On the upside, the $30,000 threshold is the first significant resistance, but Bitcoin’s trend will only start to improve more seriously if it returns above around $32,000.