Investing.com - It was a volatile weekend for Bitcoin, which began by falling sharply on Friday night, hitting a low of $37,425 (in line with the sharp drop in the US stock market, and in particular the Nasdaq, on Friday afternoon), before bouncing back on Saturday afternoon and especially on Sunday, peaking at just over $39,000.
In terms of news, the highlight of the weekend was Warren Buffett and Charlie Munger's speech at Berkshire Hathaway's (NYSE:BRKa) annual shareholder meeting on Saturday, during which they spoke about Bitcoin.
Warren Buffett and Charlie Munger are again critical of Bitcoin
The Oracle of Omaha, famous for saying that bitcoin was "probably rat poison squared", has launched a new anti-bitcoin explanation:
"Whether it goes up or down in the next year, or in five or ten years, I don't know. But the one thing I know for sure is that it doesn't produce anything... There's magic in it and people have associated magic with a lot of things."
Buffett gave some examples. He would pay $25 billion for a 1% interest in all the farmland in the US. He would also pay $25 billion for a 1% interest in all the apartment buildings in the country. "I'll write you a check this afternoon," he said.
However, when it comes to buying bitcoin, he detailed:
"Now, if you tell me that you have all the bitcoins in the world and you offer them to me for $25, I wouldn't take them because what would I do with them? I would have to sell it back to you somehow. There's nothing to gain from it."
Unlike bitcoin, "flats will produce rent and farms will produce food," he said.
Charlie Munger was no more tender, saying:
"In my life, I try to avoid things that are stupid and bad and make me look bad compared to someone else - and bitcoin does all three"
He then elaborated: "First, it's stupid because it's still likely to go to zero. It's evil because it undermines the Federal Reserve System... and thirdly, it makes us look like idiots compared to the Chinese Communist leader. He was smart enough to ban bitcoin in China."
Note that these statements did not seem to have an impact on the price of bitcoin.
Bitcoin's technical profile remains bearish
From a chart perspective, a step back in daily data shows that bitcoin's solid rise over the weekend has not improved the cryptocurrency's bearish profile.
It remains stuck below several key obstacles, including a downtrend line visible since early May, currently at around $39,000, then the key psychological threshold of $40,000, and the 100-day moving average at $40,900.
On the other hand, it should be noted that bitcoin took support from the $37,500 area for its weekend rebound, confirming the importance of this support, which has helped limit bitcoin's losses since late February.
By David Wagner