correction of the price of digital currencies after the announcement of the sale of Tesla’s Bitcoin reserves; Is Elon Musk ready to buy again?
Bitcoin price is experiencing high volatility after a temporary rise above the $24,000 level. Perhaps the reason for this is the publication of Tesla’s report, according to which, during the second quarter of this year, 75% of its Bitcoin assets, or in other words, 926 million dollars of Bitcoin, were liquidated.
To Report Cryptonews, despite the publication of this report, Elon Musk, the head of Tesla, emphasized that the publication of the news of the widespread sale of Bitcoin does not reflect the company’s attitude towards this digital currency. According to Musk, the reason for their decision was the uncertainty of the end of the quarantines caused by the Corona epidemic and, as a result, the need to increase the company’s liquidity.
By announcing that the company has not sold its Dogecoin reserves, Musk adds in this context:
Of course, our goal is to increase the company’s bitcoin reserves in the future.
However, despite these statements by Musk, the digital currency market could not maintain its upward trend and once again lost the conquered positions.
Bitcoin is currently trading near $22,800, thus its price is down 3% from yesterday and up 13% from last week.
Altcoins have also had a relatively downward trend. Ethereum is trading below the $1,500 range with a 5% drop in price. XRP is currently in the $0.35 range, losing recently conquered positions. Cardano has also lost its $0.50 support with about a 9% price drop.
Bitcoin price
After Bitcoin decisively crossed the $23,500 resistance, the digital currency failed to cross the $24,000 resistance. Bears of this market activated in the range of $24,200 and once again brought the price back below the range of $23,000. If the downtrend continues, the first support will be at $22,500 and the next key support will be at $22,250. Crossing these supports could be a signal for the price to reach the $21,200 range.
But if the Bitcoin trend goes up, it will face resistance at $23,500. The next key resistance is $24,000, and a break through it could further accelerate the price upside.
Ethereum price
Ethereum struggled to stay above its $1,600 resistance; But it failed to do so and fell below $1,500. Currently, the price of Ethereum is $1,490, thus the price of Ethereum has decreased by 5% compared to yesterday, but it has experienced a 34% increase in price compared to last week. Ethereum’s closest support is in the $1,450 range, and breaking it could result in a more drastic price correction.
But if the price trend of ethereum goes up, the first resistance will be in the range of $1,550 and the next resistance will be in the range of $1,600, and crossing these resistance points promises to increase the price again.
The price of altcoins
Cardano failed to break through its $0.55 resistance and started a downward trend until its price dropped by 9% and reached below $0.50. With this trend, there is a possibility that the $0.465 level will be experienced again.
BNB tried to break the $272 resistance; But its price was revised to $262. Now this digital currency is trying to stay above its $250 support; Because the traders of this digital currency know that if this support is broken, the possibility of reaching the level of $235 is not out of mind.
The price of Solana is traded with a 12% decrease in the range of $40. If the price closes below $40, a move to $38 support is imminent.
Dogecoin, which was trying to test the $0.075 resistance, is now trying to stay at least above the $0.070 support. If the bears are still active, reaching $0.065 is also possible.
The price of XRP (XRP), which advanced to the $0.388 range, once again returned to the $0.35 level. If the downward trend continues, the price may reach $0.332.
Most altcoins in the market are going through a red day. Among the top 100 digital currencies in the market, Polygan had the worst performance with a 14% decrease and reaching the price of $0.80.
In short, the price of Bitcoin began to correct after reaching the level of $24,200. Now, if the $22,500 support is lost, reaching the $21,200 level is also available.