by Mish Shedlock, Mishtalk:
I don’t know where Bitcoin is headed and no one else does either, but margin calls and leverage could easily lead to a rout.
Bitcoin broke technical support at the $35,000 level, but that support was very weak with only one bounce off that level.
Words of Warnings
Technically speaking, the $32,000 level looks far more promising for a bounce.
TRUTH LIVES on at https://sgtreport.tv/
But this is a bear market now, not just in Bitcoin but in all risk assets. Thus, there is no reason, fundamental or technical, for a bounce at the $32,000 level to hold.
And if it doesn’t, the next support is at the $19,000 level.
Margin Calls
The $19,000 level is an interesting level because margin calls are in play.
If Bitcoin hits $21,000, $MSTR will get margin called.
per their earnings call
— Hedgeye (@Hedgeye) May 4, 2022
MSTR Takes Out Loan to Buy Bitcoin
If Bitcoin hits $21,000, $MSTR will get margin called.
per their earnings call
— Hedgeye (@Hedgeye) May 4, 2022
