- “Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment…,” Union Bank of Switzerland.
- Bitcoin buyers must sustain movement above $7,400 (key resistance) for a breakthrough towards $7,500.
A recent report released by the Union Bank of Switzerland says that the bank finds Bitcoin to be too volatile and unstable and these limitations hinder from being adopted as a mainstream asset. However, the biggest cryptocurrency by market capitalization has come a long way since it was released in 2009. Investors have a lot of hope that Bitcoin will make to be considered as a currency with the ranks of the US Dollar. Moreover, other studies released by the IMF and other international agencies say that digital assets do not have much influence on the world economy.
Bloomberg also reported that the Union Bank of Switzerland said that Bitcoin will have to trade at $213,000 for it to replace the US dollar. A section of the report from the bank says:
“Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class.”
Furthermore, the report finds Bitcoin limited in terms of the number of transactions processed and its ability to rival the likes of Visa and MasterCard. It also details that the asset’s volatility stands in the way of it being viewed as an alternative asset of value.
Bitcoin is a sitting duck above the support we explored in an earlier analysis at $7,300. The cryptocurrency is trading as though afraid of making bigger movements. It is slightly bullish, but the bulls lack the power to push it past the resistance at $7,400 which is close to the 50% Fib retracement level with the previous swing high of $8,465.79 and a low of $6,345.32.
The support at $7,300 is strong enough to hold the price if the volatility levels shown by the Bollinger Bands remain stable. The 21 day simple moving average on the hourly chart will also offer resistance marginally above the 50% Fib level. Bitcoin buyers must sustain movement above $7,400 (key resistance) for a breakthrough towards $7,500 and eventually above $7,600. The upper supply zone lies at the 61.8% Fib level at $7,657.31 (ultimate intraday resistance).
BTC/USD hourly chart 
