Bitcoin falls 3% as the halvening gain disappears

Bitcoin is now down 3.3% on the day, or $2200, to $64,150. Virtually all of the selling has been since the start of the US session and points to some broader angst in risk assets.

It climbed earlier in the week after the halvening but stalled out yesterday and is now back to pre-April 20 levels. The three-day candle paints something of a reversal and in the bigger picture, there is an emerging pattern of lower highs and lower lows, though it’s mainly sideways trading.

I wouldn’t read too much into the decline until/unless $6000 cracks again.

Fundamentally, I see bitcoin as closely tied to the overall tech rally (many earnings coming up) and the path for US interest rates. Rising Treasury yields are threatening to undercut risk assets and bitcoin doesn’t look like it will be an exception, especially now that there isn’t anything BTC-specific to look forward to (though some may argue the Hong Kong ETF).

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