We got our answer
‘Buy the rumor, sell the fact’ is one of the great axioms in trading for a reason. Today was a perfect example as bitcoin started running up late last week on rumors of an imminent approval of a bitcoin ETF. Today’s the ProShares BITO ETF started trading and the bulls tried another push above $63,000 but couldn’t get through the key $64,800 level.
A wave of selling just hit, taking it down to $61,700.
This might just be a dip because I think some real money is coming to that ETF (and others) but the whole exercise begs the larger question: If this news can’t get bitcoin to new highs, what can? It’s the best possible news and yet $64,800 looms as a double top. Even if you’re bullish, there’s a good argument to head to the sidelines here and wait for a break to new highs.