21.08.2023 – This doesn’t look good for the crypto bulls: Elon Musk single-handedly sunk Bitcoin and co. More specifically, it was his space company SpaceX. The matter looks like a major loss of confidence.

Crash in Bitcoin: BTCUSD struggles to build a bottom. Still, there is hope for the bulls: The daily chart shows a small and a very large gap; both would have to be closed again relatively quickly according to the rules of chart technique. Just as it had already been the case about two months ago.

 

Source: Bernstein Bank GmbH

What had happened: SpaceX, Musk’s space company, sold its entire bitcoin holdings. A few days ago, the “Wall Street Journal” had kicked off the story – bitcoin worth $373 million were said to have been involved. However, it was not clear when the sale went through. It looks like Musk has lost faith in cryptos. That’s because his e-car company Tesla reduced its Bitcon holdings in the second quarter from what was once $1.5 billion to $184 million. Or else, he just needs cash.

Billions wiped out

However: In the meantime, BTC dipped to its lowest level in two months. And thus wiped out all the gains that had accumulated since the asset manager BlackRock registered a Bitcoin ETF. Other e-currencies also plummeted – wiping out nearly $66 billion in stock market value in a very short period of time, as calculated by “Wirtschaftswoche.”
Some believe that it can go further down. For example, Josh Gilbert, market analyst of the social trading platform eToro. He referred to the support at $ 25,000 in an interview with the news agency Bloomberg.
The “BTC Echo” stated the “biggest liquidation wave since the FTX crash.” Bitcoin had not been able to hold any important support. And further: the RSI is now “massively oversold”. For bullish investors, it is now important not to fall below the daily low of August 17, which was 25,186 US dollars. Whereby we ask ourselves, with which stock exchange this price originated. No matter: If this support is also broken, there could be a further sell-off below the 25,000 US dollar mark, judged the “BTC Echo”.
We will keep an eye on the situation for you – Bernstein Bank wishes successful trades and investments!

 

________________________________________________________________________________________________________________________________________

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice. CFDs are complex instruments and are associated with the high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFD with this provider. You should consider whether you understand how CFD work and whether you can afford to take the high risk of losing your money.7

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.