The US dollar was a bit stronger during the day on Monday, so it makes some sense that Bitcoin would suffer.
- BTC/USD fell again during the trading session, losing 3.25% by the time the Americans started heading home.
- More importantly, we are retesting the lows, suggesting we are getting ready to break even further.
- If that’s the case, then it’s just a continuation of all the horrendous sales we’ve seen over the past few months.
- Yes, there was a lull for a while while the market tried to stabilize. However, that has completely broken down and the market looks poised to continue falling.
The US dollar was a bit stronger during the day on Monday, so it makes some sense that Bitcoin would suffer. After all, Bitcoin tends to move in the opposite direction as it is seen to escape central bank monetary policy when quantitative easing is in full force. However, Bitcoin has never faced Federal Reserve tightening and we see how interconnected it is with the US dollar. Quite frankly, most of what you’ve been told about Bitcoin is inherently false, and anyone who thinks it’s completely unrelated to the rest of the asset markets has lost a lot of money.
Now that it looks like we’re going to have a serious attempt to break below the $15,000 level, we could very well see Bitcoin fall to the $12,000 level after what would be a complete “retrace” from the last rally. To be honest, there are a lot of crypto Ponzi schemes that are still falling apart, so I think it will be difficult for Bitcoin to make a significant turnaround anytime soon.
As for rallies, I suspect the $18,000 level should offer some ceiling to the market as we saw it before acting as support, and we also have the 50-day EMA in the same neighborhood. The rally in the market and now should offer a good opportunity to sell in a market that frankly does not have a business rally in this environment. I suspect it will soon take a full pivot from the Federal Reserve to make Bitcoin swing higher. Honestly, buying bitcoins is something you have all the time in the world.
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