Bitcoin Price Bloodbath: Is El Salvador A “Sell The News” Event?

Tony "The Bull" Severino

Last Updated: June 11, 2024 1:58 pm

3 mins read

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Today is one of the biggest days in the history of Bitcoin, with one of the most fundamentally bullish moments unfolding: the cryptocurrency has officially become legal tender in El Salvador. But Bitcoin price isn’t responding as expected.

Instead, the market has responded with an absolute bloodbath and $10,000 drop per coin. Could this mean that Bitcoin’s big deal was merely a “buy the rumor, sell the news” event? Or despite the selloff will this moment have a lasting impact?

Bitcoin Price Sheds Nearly 20% In El Salvador Bloodbath

Bitcoin price is down more than 19% intraday on a day that was supposed to be its time to shine. The leading cryptocurrency by market cap before it becomes a teenager has become legal tender in the country of El Salvador.

The country itself has purchased 400 BTC to distribute to adults who use the government-run Chivo app. Other nations and individuals are buying BTC in support today of the milestone moment in the history of crypto.

Having risen from virtually worthless, being bootstrapped via the dark web, to now becoming legal tender of a nation is nothing short of incredible. There is no denying the potential implications of this move and its dramatic impact on cryptocurrency adoption and acceptance worldwide.

Yet for some reason, Bitcoin price isn’t responding with the bullish momentum it has had leading up to the law going into effect, but why?

Bitcoin price plummeted almost 20% today | Source: BTCUSD on TradingView.com

Whales Are Selling The News As BTC Drops $10,000

In finance, there’s adage that says to “buy the rumor, sell the news.” In the case with El Salvador, it wasn’t rumors leading up to today, but rather the build up to the historic debut. Another recent example of such a scenario was the Coinbase Global debut on the stock market. Before that it was Bakkt, and prior to that it was the CME BTC Futures launch in December 2017. Big debuts haven’t been kind to Bitcoin.

Smart money investors bought Bitcoin back when the blood was fresh and flowing, knowing full well this day was coming. With the day now here, profit-taking could be setting back the top cryptocurrency by market cap.

These investors or traders might not be bearish on Bitcoin, but taking profits is never a bad idea. Blasting through the level could be confirmation the bull run is back on, and smart money being smart – are more than willing to wait for such a signal.

The profit-taking might have had an unintended effect of liquidating over-leveraged long traders, which caused a cascade effect of stop losses being hit and causing the price per BTC to tank more than $10,000 as a result.

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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