Sharing a Technical Analysis about Bitcoin published on Bloomberg, Nassim Nicholas Taleb, author of The Black Swan and Antifragile, stated that technical analysis equals astrology. In other words, he points out that both are useless.
The famous investor spent 2021 hitting Bitcoin, citing that the world’s largest cryptocurrency is a scam.
However, it is worth noting that technical analysis is excellent for understanding how the market behaves. This way, investors can find the best entry and exit moments for any asset, whether crypto or traditional financial instrument.
Technical analysis equals astrology, says Taleb.
Nassim Nicholas Taleb is a Lebanese-American essayist, mathematical statistician, former options trader, risk analyst, and aphorist whose work concerns randomness, probability, and uncertainty problems. The Sunday Times called his 2007 book The Black Swan one of the 12 most influential books since World War II.
On Wednesday morning, Nassim Taleb shared an article by Akshay Chinchalkar, published on Bloomberg.
Titled “Bitcoin’s Trendline From Peak Keeps Pressure on Token,” the article contains a brief study of Bitcoin’s price movement, using only a downtrend line and pointing to the formation of some “shooting stars,” as shown below.
The famous author of books like Antifragile said there is no proof that these patterns can increase traders’ gains. Finally, comparing technical analysis with astrology.
He said:
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
Despite Taleb’s skepticism, it is notable that Bitcoin is facing strong resistance at this downtrend trendline featured in the Bloomberg article. Perhaps the writer’s biggest fight is with BTC itself.
Technical analysis is a method used by some traders to read the market. The study notes that the market will continue to fall as long as Bitcoin remains below that line in the example cited above. Therefore, a falling trend line breakout could mean a market turn.
The writer called both journalists and cryptocurrency investors idiots on different occasions.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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