Bitcoin flirts with $60,000 in a harmful second for threat urge for food

Bitcoin is trading at the lowest since mid-May after a dump in Europe that’s only been held up by bids in the $60,600 zone.

First of all, bitcoin is very technical and the inability to break $72,000 and instead forming a top is worrisome. If we break $60,000 and possibly $57,000, that would leave an ugly pattern targeting sub-$50,000.

Bitcoin is often a forerunner of risk sentiment, though it’s more of an intraday thing than one that runs ahead of broad risk sentiment by days. That said, it certainly correlates with risk assets. The recent bottom came in late-October 2023, which is precisely when stocks bottomed.

The bitcoin chart remains of the Russell 2000 and its inability to break higher.

The S&P 500 has broken higher but it’s just a handful of AI stocks doing it.