(BTC) dropped by nearly 3% after the US House of Representatives rejected major crypto bills that were expected to pass during Crypto Week. This move reflects quick profit-taking by investors following the familiar strategy: “Buy the Rumor, Sell the Fact”.
What is “Buy the Rumor, Sell the Fact”
This is a common trading strategy based on market psychology. When there is positive rumor, asset prices often rise as investors buy in anticipation. However, when the official news is released (good or bad), prices tend to reverse because:
- Investors take profit after the rally
- The real result fails to meet “overblown” expectations
- Big players use FOMO to unload positions
BTC’s Reaction After the US House Vote
Previously, BTC surged on expectations for Crypto Week initiated by President Trump, aiming to make the US the “crypto capital” with three major bills: Stablecoins Bill, Crypto Market Structure Bill, Anti-CBDC Bill. BTC hit a new all-time high, with Coinbase (NASDAQ:) and MicroStrategy (NASDAQ:) stocks also rallying, reflecting strong market optimism.
However, when the US House voted 196–223 to reject all the bills, BTC quickly pulled back by nearly 3% as investors took profits or cut losses due to disappointment.
BTC’s Long-Term Uptrend Remains Intact
Despite this pullback, BTC’s long-term uptrend remains intact:
- Price stays above the SMA(200), supported by real buying pressure from ETF inflows.
- Currently, price is being supported at the 23.6% Fibonacci retracement level.
- RSI (H4 and daily) has dropped and is showing slight recovery, indicating selling pressure may be weakening but further confirmation is needed.
- Near resistance: $123,000
- Strong support: $112,000
Figure 1: BTC/USD H4 Chart – July 16, 2025
Overall, BTC may have experienced a typical “Buy the Rumor, Sell the Fact” move in the short term, but its long-term uptrend remains strong. Traders should combine technical analysis and risk management to avoid being caught in FOMO-driven moves.
