The last two hours have been a rollercoaster ride for bitcoin traders.
The cryptocurrency fell as low as $92,728, but the $92,000 figure was a key support area recently and found strong buyers, rallying back to $94,500.
bitcoin 5 min
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 cannot decisively break away from $92,000 and above $100,000. Earlier this week it looked like it was going to happen with a rise to $103,000, but that fell through. We have now tested the 92K level on six separate occasions since the first break above $100,000.
BTC highlights 92K retests
It’s encouraging that those levels are holding, but discouraging that sellers continue to drag it back. An optimist might say that a base is forming here, but it all came amid a pretty good environment for venture capital, especially tech stocks.
I think the market is holding its breath for Trump, tariffs and a potential trade war. If that develops, I suspect bitcoin will be dragged down by risk assets instead of acting as a safe haven in a messy currency situation.