On May 10, a day before the bitcoin halving took place on May 11, its price fell almost to $8000 as $200 million worth of BitMEX long positions were liquidated over just 25 minutes. BitMEX is one of the major cryptocurrency exchanges. Note, if even the most liquid stock gets liquidated at such a pace, it too will undergo a substantial correction. This big selling move could have been a sell just before the news (or event) of bitcoin's halving.
GBTC undercut its 200-dma but has since bounced. This is a buying opportunity for GBTC as all tailwinds discussed in prior reports remain in effect so while bitcoin will remain volatile, it should wend its way higher in the coming months.
Crypto Report - Bitcoin buy signal (again)
| Published: | 13 May 2020 05:14 ET |
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