The US dollar had been a bit stronger during the day on Monday, so it does make a certain amount of sense that Bitcoin would suffer.
- The BTC/USD has fallen again during the trading session, losing 3.25% by the time the Americans started to go home.
- More importantly, we are testing the lows again, suggesting that we are getting ready to break down even further.
- If that’s the case, then it’s just a continuation of all the horrific selling that we have seen over the last several months.
- Yes, there was a time of calm for a while, as the market tried to stabilize itself. However, that has completely fallen apart, and it looks as if the market is ready to continue dropping.
The US dollar had been a bit stronger during the day on Monday, so it does make a certain amount of sense that Bitcoin would suffer. After all, Bitcoin tends to move in the opposite direction as it is thought of to get away from central bank monetary policy when quantitative easing is in full force. However, Bitcoin has never faced a tightening Federal Reserve, and we are seeing how interconnected it is to the US dollar. Quite frankly, most of what you’ve been told about Bitcoin is inherently false, and anybody thinking that it was completely uncorrelated to the rest of the asset markets has lost a ton of money.
Now that it looks like we are going to have a serious attempt at breaking below the $15,000 level, we could very well see Bitcoin drop down to the $12,000 level after that, which would be a complete “round-trip” from the last bullish run. Quite frankly, there are a lot of crypto Ponzi schemes out there still falling apart, so I think it’s going to be difficult for Bitcoin to make any significant turnaround anytime soon.
On rallies, I suspect that the $18,000 level should offer a bit of a ceiling in the market, as we have seen it previously act as support, and we also have the 50-Day EMA in the same neighborhood. The market rally and now should offer a nice selling opportunity in a market that quite frankly has no business rallying in this environment. I suspect it’s going to take a full pivot from the Federal Reserve to get bitcoin rocking to the upside anytime soon. Quite frankly, buying Bitcoin is something that you have all the time in the world to do.