“The Black Swan” author Nassim Nicholas Taleb said that the technical analysis of Bitcoin (CRYPTO: BTC) and other assets are simply an “anxiety reduction scheme” like astrology or the Modern Portfolio Theory.
What Happened: Taleb took to Twitter to say there is “zero evidence” that concepts such as “trendline” and “Fibonacci” in the technical analysis of cryptocurrencies predict anything in markets.
For those new to the game, there is ZERO evidence that "resistance", "trendline", "Fibonacci", "shooting star", & similar concepts predict anything in mkts. It is simply, like astrology or Modern Portfolio Theory, an anxiety reduction scheme.https://t.co/FInSFd0YO0
— Nassim Nicholas Taleb (@nntaleb) February 2, 2022
The former options trader, risk analyst and author made the comments in response to a report by Bloomberg that Bitcoin continued to trade below the trendline drawn from the cryptocurrency’s record peak of $69,000 in November.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: Taleb, who once believed Bitcoin was a promising new currency as it was without government control, has recently taken to criticizing the apex cryptocurrency.
Last month, Taleb took a dig at Bitcoin holders by giving a “ruined gambler” analogy after the cryptocurrency’s price tumbled.
In a paper published on his website in June, Taleb explained why he believes Bitcoin is worth “exactly 0.”
Bitcoin — the world’s largest cryptocurrency by market capitalization — is down more than 46% from its all-time high of $68,789.63 touched in November last year.
Price Action: Bitcoin is down 4.3% during the past 24 hours, trading at $36,997.39 at press time.
Photo: Courtesy of Rafael del Pino Foundation/Jose Rodrigo Safdiye
