The last two hours have been a ride for bitcoin traders.
The cryptocurrency fell as low as $92,728 but the 92K figure has been a key area of support recently and it found strong buyers, rebounding to $94,500.
The broader risk trade followed a similar pattern with US stocks falling and then recovering on the same timeline.
The problem for bitcoin is that it can't seem to break decisively away from $92K and above $100K. Earlier this week that looked to be happening with a rise to $103K but that's been dashed. We've now tested the 92K level on six separate occasions since first breaking above $100,000.
It's encouraging that those levels are holding but it's discouraging that sellers continue to drag it back down. An optimist might say that a base is forming here but this has all come amidst a pretty good environment for risk assets, particularly tech stocks.
I think the market is holding its breathe for Trump, tariffs and a potential trade war. If that unfolds, I suspect bitcoin wil be dragged down with risk assets rather than acting as a safe haven in what will be a messy currency situation.
