- Musk tweeted a broken heart with the bitcoin (BTC, -5.63%) logo and a picture showing a couple in the midst of a breakup during the Asian hours.
- The crypto community took it as a sign of the billionaire distancing himself from bitcoin and offered the cryptocurrency, leading to price losses.
- Bitcoin fell nearly 7%, hitting lows under $36,500 and reversing Thursday’s rally to $39,200. Other cryptocurrencies including ether (ETH, -6.4%), cardano (ADA, -9.38%), polkadot (DOT, -11.4%), and dogecoin (DOGE, -12.3%) followed suit, suffering relatively bigger losses.
- The pullback poured cold water over the optimism generated by the symmetrical-triangle breakout confirmed on Thursday.
- The failed breakout is not a good sign, Delta Exchange CEO Pankaj Balani said. We could see deeper losses if the recent range is breached to the downside.
- Bitcoin is currently down more than 70% from the record-high $64,801 reached on April 14.
- The cryptocurrency fell by 35% last month after Tesla delisted bitcoin as means of payment, citing environmental concerns. The move quashed hopes for widespread corporate adoption.
- Musk’s latest tweet may further amplify those fears.
- Data provided by Skew shows the options market is biased bearish, with long put trades accounting for 29% of the flows seen today and short call trades accounting for 30%.
- Investors typically buy puts and sell calls when the market is expected to drop.
Also read: Bitcoin’s Bull Market ‘May Have Come to an End,’ Says MRB Partners
