With the negative fundamental developments, it may be best to focus on traditional hedging and speculative instruments like Bitcoin (BTC).  If portfolio managers are going to hedge or bet against Bitcoin (BTC), CME futures may be the best chart to focus on.

Right now, Bitcoin (BTC) futures have broken back below the diagonal resistance point at $5,185 (Figure 1). This diagonal resistance point goes back to a set of Fibonacci speed resistance lines that goes back to when Bitcoin (BTC) was at $16,000 (Figure 2).

 Figure 1

 Figure 2

Bottom Line: Bitcoin (BTC) needs to rally to prove that the recent drop is not a major rollover. If there is no Bitcoin (BTC) rally, then Bitcoin (BTC) is at the mercy of headlines. Retail U.S. brokerage firms offering crypto trading to equities client is constructive. NY AG headlines and some longer term charts are negative for Bitcoin (BTC).

The Crypto.IQ Trading Desk has been really on top of this latest move in Bitcoin (BTC). It has been truly impressive.

Join me there.