Wednesday's spike low at risk
Bitcoin is down $2000 today or 3% and is now threatening Wednesday's spike low of $62,856 with prices around $200 above that.
A breakdown could threaten $60,000 again.
I'll be watching broad market sentiment as a guidepost. There's some talk about bitcoin as an inflation hedge but I don't think it's there yet.
It's been a frustrating run of false breakout and breakdowns in bitcoin in recent weeks. It's one of the more-reliable technical trades out there but it hasn't been playing out that way recently.
The weekly candle isn't shaping up to be a great one but you only need to go three weeks back to see a spinning top that didn't result in much downside. Overall, I think the bulls are still onto something here but it's tough to navigate the volatility.
