$BTC $ETH $SOL
The fake breakout I mentioned this morning came to pass this afternoon: BTC around $76,100.
Yesterday’s high was around $81,131, and today it dipped as low as about $75,431—a drop of roughly $5,700 in one day.
This morning, I said: if it couldn’t close back above $79,500, we’d treat the breakout as a fakeout.
Turns out we didn’t even have to wait for the close—the market gave us the answer as soon as U.S. trading opened.
The Nasdaq fell about 4.9% intraday, the S&P 500 dropped around 3.8%, and the Dow fell about 3%. Chips were hit especially hard: Qualcomm fell about 8.8%, and Nvidia about 8.2%.
There were two main triggers: Qualcomm’s outlook was weak after its earnings report, while Arm’s guidance came in only slightly above expectations. After the midterm elections, the market is also worried that data center construction could slow and regulation could tighten.
It’s no coincidence that crypto fell along with stocks: this time, the sell-off hit the AI trade. Mining stocks dropped 15% to 20%, and leveraged longs worth over $1 billion were liquidated in a single day.
ETH is around $2,256 and SOL around $89.6, both down more sharply than BTC.
The $79,500 level is no longer relevant for today. Now the question is whether the $75,000 area can hold. The 50-week moving average, around $75,733, was also briefly breached today.
Tomorrow at 8:30 a.m., the October jobs report comes out—the first major economic data release since the election. Don’t rush to buy the dip before the close.
This is my personal opinion and not investment advice. I’ll be following the jobs data tomorrow morning and will share an update as soon as it’s released. Follow me for the next one.
The fake breakout I mentioned this morning came to pass this afternoon: BTC around $76,100.
Yesterday’s high was around $81,131, and today it dipped as low as about $75,431—a drop of roughly $5,700 in one day.
This morning, I said: if it couldn’t close back above $79,500, we’d treat the breakout as a fakeout.
Turns out we didn’t even have to wait for the close—the market gave us the answer as soon as U.S. trading opened.
The Nasdaq fell about 4.9% intraday, the S&P 500 dropped around 3.8%, and the Dow fell about 3%. Chips were hit especially hard: Qualcomm fell about 8.8%, and Nvidia about 8.2%.
There were two main triggers: Qualcomm’s outlook was weak after its earnings report, while Arm’s guidance came in only slightly above expectations. After the midterm elections, the market is also worried that data center construction could slow and regulation could tighten.
It’s no coincidence that crypto fell along with stocks: this time, the sell-off hit the AI trade. Mining stocks dropped 15% to 20%, and leveraged longs worth over $1 billion were liquidated in a single day.
ETH is around $2,256 and SOL around $89.6, both down more sharply than BTC.
The $79,500 level is no longer relevant for today. Now the question is whether the $75,000 area can hold. The 50-week moving average, around $75,733, was also briefly breached today.
Tomorrow at 8:30 a.m., the October jobs report comes out—the first major economic data release since the election. Don’t rush to buy the dip before the close.
This is my personal opinion and not investment advice. I’ll be following the jobs data tomorrow morning and will share an update as soon as it’s released. Follow me for the next one.
