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!
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