Bitcoin turns lower after failing to break $70,000

The stars looked to be aligning for bitcoin late last week as tech stocks and Nvidia shares hit records, risk appetite improved and gold soared to all-time highs. In addition, reports of heavy buying of ETFs indicated strong investor demand.

Evidently that wasn’t enough to crack $70,000, let alone the March record high of $73,800. Bitcoin has chopped lower since before turning decidedly lower today, falling 2% to $65,900.

Bitcoin looks like it needs some kind of fresh catalyst. I don’t think Middle Eastern strikes will do it and turmoil in the US election bad enough to affect markets would likely be negative as stocks are hit.

I thought there was a real chance to make a move this week but it’s been a disappointment. Technically, I think the best you could hope for here is that the drop to these levels is a retest of the September high and that we get some consolidation ahead of a break higher in the next two weeks. But if bitcoin falls below $65K, you need to throw in the towel on that hope.

This article was written by Adam Button at www.forexlive.com.