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Elon Musk has recently triggered a downward movement of bitcoin. After the statement that Tesla will not temporarily accept bitcoins as a means of payment due to environmental issues of BTC mining, another batch of rumors/facts/disclaimers appeared on Sunday.
Over the weekend, there was a rumor that Tesla probably sold off bitcoins. The quote fell to the support level of 41980.24 by Monday amid that news. However, today Elon Musk reported that the company did not sell bitcoins. "To clarify speculation, Tesla has not sold any Bitcoin," Musk said in a tweet. As saying goes, sell on rumors, buy on facts. BTC bounced off the support level.
Analysts and traders note that it is difficult to believe that an individual or a company can have such a strong influence on the digital currency with the highest market cap.
Peter Schiff, a well-known bitcoin critic, is confident that bitcoin has already been sold off. This is why Tesla has not actually sold anything. This means an even more bearish trend. Imagine what will happen to BTC when Tesla finally sells it!
What do I think about all this? Probably, those who wanted to sell bitcoin waited for the right moment and Musk's statement triggered a wave of selling. Nevertheless, this movement is no longer very similar to a slight downward correction.
Most likely, retail investors sold off bitcoin, while large companies and well-known individuals picked a different approach. MicroStrategy used the BTC drop to buy, and Square, owned by Twitter founder Jack Dorsey, said it would no longer buy Bitcoin in the future.
We should also bear in mind that the market is very volatile now, and cryptocurrencies are even more so. Long-term forecasts about bitcoin's unprecedented ups and downs can be explained technically. At the moment, the price is likely to choose a trajectory that is unlikely to be in line with forecasts. Therefore, it is better for speculative traders to quickly place Take Profit order, since tomorrow the situation may already change.
These speculators should use technical analysis as it will help them make the right decision. We will continue to analyze the daily chart for more information.
As long as the price of BTC/USD was above the level of 48178.13 (red dotted line) and the support line of the uptrend marked in blue, there was a chance that the correction would be short-lived.
However, the price has broken through the support of the uptrend, it has lost its relevance. Although the strong support level of 41980.24 has not yet been broken, there are already signals on the chart. Take a closer look at the formation of a new channel, descending, from the historical high (marked with blue dotted lines).
The price bounced off the support level, which means that, technically, BTC/USD may rise to the range of 51,000 - 54,000. If the price rebounds from the resistance level of this trend, it could be a signal of a deeper correction.
The fall may occur even earlier. The key level is 41980.24. If the pair breaks through this level, then it may hit $34,000 per coin. To do so, the psychological level of $40,000 per coin should be broken.
This is one of the possible scenarios. A new day can give us new insights, new triggers, and new information to think about. Therefore, it is necessary to monitor the situation with BTC and react in time to a change in the market.
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