The US strategic bitcoin reserve announcement wasn’t the catalyst that bitcoin bulls hoped it would be. Instead, it’s created a flurry of ‘sell the fact’ trades that have it threatening the lowest levels since the election.
Bitcoin is currently trading down $3000 and just above $80,000. It fell as low as $79,370 a few minutes ago, touching a session low as broad risk trades are beaten up.
$78,273 was the intraday low in February and that’s important support from here.
Many ‘Trump trades’ have done a full reversal, including Tesla which is down 9% and is now trading below pre-election levels.
On the morning of the US vote, bitcoin traded at $69K but rose to $76.5K by the end of the day. In the year before the election it traded in a range of $55K-$73K, tagging both sides of that frequently.
We could be seeing a retest of that old range and that’s where I would expect stronger bids to show up.
At the moment though, there is a major deleveraging unfolding across markets.
This article was written by Adam Button at www.forexlive.com.
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