bitcoin Bitcoin/USD It fell more than 5% between 4 p.m. Wednesday and 8 a.m. Thursday before recovering.
The drop is due to Tesla Inc. Tesla Printed its financial results for the second quarter, showing that it has liquidated about 75% of its bitcoin holdings, adding $936 million to the electric vehicle giant’s balance sheet.
The news was mocked by retail traders, who took to social media to express anger and disappointment at Tesla’s decision. Last May, Tesla CEO Elon Musk said on Twitter that he had a diamond hand in terms of his crypto holdings, which many assumed meant he would not sell any positions .
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From a technical standpoint, Bitcoin should pull back and despite the lower price, Bitcoin’s chart remains healthy.
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Bitcoin Chart: Bitcoin reversed into an uptrend on July 3 and has since made a series of higher highs and higher lows. Bitcoin’s most recent high was formed at the $24,287 mark on Wednesday, and its most recent high was at $20,755 on July 16.
Thursday’s low could become the next higher low in the pattern, and if so, Bitcoin is likely to rise and print another higher high in the coming days. Bitcoin could also continue to edge lower in a consolidation before breaking out of Wednesday’s highs, which would be healthy as long as the cryptocurrency doesn’t print lower lows. Bitcoin may also enter a bull flag pattern on the daily chart, with poles forming on Monday and Tuesday, after which the flag forms. If the pattern is identified, the measured move is around 15%, which suggests that the cryptocurrency could surge towards the $25,800 level. If Bitcoin closes the session above $22,800, the cryptocurrency will print a hammer candlestick, which could signal higher prices in Friday’s 24-hour trading session. If the cryptocurrency closes the session close to its lows, Bitcoin could head lower again during Friday’s session. It should convince bullish traders that Bitcoin is still trading above the 8- and 21-day exponential moving averages as well as the 50-day simple moving average on a pullback. Bearish traders would like to see the moving averages lose support in the coming days. Bitcoin’s upper resistance is at $25,772 and $29,321, while its lower support is at $22,729 and $19,915.See Also: Bitcoin Liquidates $136M After Tesla BTC Sale
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