Bitcoin slid 6.27% to $33,552 in Asian trading on Monday, June 7. Intraday price action bottomed out at $32,123 as social media trolling continues to batter the cryptocurrency market.
On June 4, Elon Musk posted a tweet with the #Bitcoin hashtag and a broken heart emoji. In the wake of this cryptic post, the price of bitcoin plunged over 6%. Memes have recently turned against bitcoin. Musk knows that he has a strong impact on the cryptocurrency market and has inflicted heavy losses against novice investors due to heightened volatility spikes, but he continues to come out with controversial cryptocurrency posts. The hacktivist collective Anonymous accused Musk of exerting excessive influence on the cryptocurrency market and essentially threw down the gauntlet to him.
Donald Trump is an opponent of cryptocurrencies, but as far as I remember, he never called Bitcoin a scam. In an interview with Fox Business, the former US president stated: “Bitcoin, it just seems like a scam. I don’t like it because it’s another currency competing against the dollar ... I want the dollar to be the currency of the world”.
After this, the price action broke through a triangle formation and BTC traded down to $32,123. And while the decline has slowed down, buyers continue to languish in the doldrums. According to bybt.com, during the recent pullback, longs worth over $400 mln were liquidated. Nobody can take much more of this.
The bulls are in no hurry to buy into bitcoin as they are afraid the price could drop below $30k. According to average estimates, the bears plan to push for $20k. The midpoint between $20k and $30k is $25k. This is a low-liquidity market, so do not be surprised if the intraday price action reaches 25% (i.e. down to $25k). To relieve stress on the crypto market and for a pinbar (a candlestick with a long lower shadow) to form, the price action needs to close above $36,600.
Trump also took aim at bitcoin. For this reason, altcoins are holding up well against the dollar. Bitcoin’s dominance is currently 41.6%.