Bitcoin has fallen by some 30% from $42,000 to test support at $30,000 with it unclear whether it will hold.
After some sideways at $40,000 while eth was nearing all time high, bitcoin turned downwards yesterday as pictured above.
It began turning downwards around midnight UTC, which would translate to about 8AM Shanghai time.
Suggesting this is China’s doing and not for the first time. For some days now Chinese bearishness has been noticeable during night time, with European and American bullishness showing during daytime.
China as it happens still accounts for 60% of bitcoin mining. It may well be such miners choose to liquidate when the buyers are asleep because thats when its daytime for the miners.
The big question is now whether this $32,000 support will hold, with our tree leafs giving us some new numbers:
55, looks like a big number, but that’s actually not too far from $50,000, just 10% at yesterday’s price of $40,000.
As you can see our leafs can’t see much between 40 and 50, but we’d say $42,000 is some resistance.
On the other way, $32,000 is the bigger support, and $30,000 maybe even bigger, so you’d expect some pushbacks around these levels, though who knows.
On fundamentals, we’re awaiting Biden’s trillions and ethereum futures. With Trump conceding now and Biden in control of both houses, free money might be flowing maybe as soon as the end of the month.
Biden is to detail his plans this Thursday, at which point we should learn how much he’ll give towards promoting breastfeeding and other nanny state activities.
We know he wants to give $2,000 to every American, so that’s about one bitcoin market cap, with some of it presumably making it towards crypto.
So the outlook is decent on fundamentals, but what bitcoin does in the short term remains to be seen.