Due to the Covid-19 uncertainty, the giant electric car maker Tesla sold 75% of its Bitcoin to maximize its cash holding. However, they also assured that the sell-off does not change their view on Bitcoin as a ‘People’s Coin.’ This sell-off happened previously, and the news came recently, so it does not impact the price of Bitcoin, and it has stayed up in the last seven days.
The CEO of Tesla, Elon Musk, has a mixed relationship with cryptocurrency. He prefers Bitcoin, Ethereum, and Dogecoin more than other cryptocurrencies. Tesla had 1.5 Billion worth of Bitcoin, but they sold 10% last year. They also announced that they accept Bitcoin as payment for their business. Later in May 2021, Tesla changed its stance and said it suspended Bitcoin payment due to environmental concerns.
What Does This Sell-off Mean for Investors?
Experts think Bitcoin is an asset, and it will remain as it is, but this sell-off may postpone the tentative rally for the next few months. It crossed the $24,000 mark in the last two months for the first time, but it may not reach the all-time high this year. Read our Bitcoin price prediction to know when it will come close to its ATH.
Tesla sold their holding recently. However, it does not reflect the stance of Tesla on Bitcoin. Tesla and Musk indeed influence the crypto price, and the sell-off for their realized gain may hurt the retail sentiment but encourage other businesses to enter the crypto market.
At the time of writing this post, BTC was trading around $22,893. In the short term, BTC is forming higher highs and higher lows where $20,000 will work as a support level and will reach $30,000. Most of the technical indicators are bullish.
MACD has been forming a green histogram since the last week of June, and RSI is stable at around 60. Candlesticks are hitting the upper range of the Bollinger Bands, which may suggest a resistance level, but the Bitcoin price will cross the level soon.
On the weekly chart, it may turn bullish because it has taken support of around $20,000 and has formed a green candle, which seems to be a start of a bull rally.
However, the recent news may postpone the rally for a few more months or years. The only drawback of BTC is that it needs a lot of energy for mining which is not eco-friendly. Still, it is an asset for long-term investment. It is a good time to invest in Bitcoin and wait for a long-term profit.