On Monday, bitcoin updated its lows in February at $ 42,000. The first cryptocurrency is trying to hold above the lows of the end of February around $ 43,000; with their confident breakdown, the situation can deteriorate sharply.
On May 17, Bitcoin tested the lows since February 8, 2021. It was on that day that Tesla revealed its $ 1.5 billion position in the first cryptocurrency.
On Sunday, Tesla CEO Elon Musk criticized bitcoin, and also admitted the possibility of liquidating the company’s position in the cryptocurrency, thereby causing panic in the market. Musk later wrote on Twitter that Tesla did not start selling the bitcoins accumulated by the company, writes RBC.
The technical picture rather speaks of a continuation of the correction and a bearish trend, while fundamentally the prospects for the first cryptocurrency remain positive.
As analyst Willie Wu notes, the pullback to $ 42,000 has created a rare opportunity to buy bitcoin based on network value to transactions (NVT).
In addition, the Relative Strength Index (RSI) has reached the same oversold condition that was observed on April 25 before the price retracement by 20%.
Meanwhile, the founder of the cryptocurrency hedge fund BlockTower Capital, Ari Paul, ruled out Musk’s influence on the course. According to him, the reasons were “the weakening of the capital of Coinbase and MicroStrategy”, as well as the decline in the quotes of the bitcoin trust from Grayscale Investments relative to net worth.
Asset managers of the company are worried about the volatility of bitcoin and the possible tightening of regulation of the cryptocurrency industry, writes the Financial Times. The Swiss financial holding UBS expects to tighten the industry regulation.
- What is cryptocurrency? Everything a beginner needs to know about coins in one book. Read for free
Market forecasts, analytics and stock news