Tesla sells bitcoin, Nexon buys it. Facebook refrains from investing in cryptocurrencies

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On April 29, bitcoin was hesitant to pick up a trajectory. It neither fell nor rose. For those investors who were betting on the correction that was a piece of bad news. The fact is that the longer bitcoin is holding around the level of $55,859 without starting a correction, the less likely the correction will occur. Usually, when the price bounces off an important level, it starts to decline quite quickly. From the long-term perspective, it happens within a couple of days. Thus, bitcoin still has some time to enter the correctional phase but it seems more and more impossible. The movement of the cryptocurrency could be determined by some fundamental factors but there has been very little important news in recent days. We have already talked about the fact that Tesla has sold about 10% of its bitcoin assets, explaining this as "checking the liquidity of the cryptocurrency." We have questioned this explanation as from our point of view, bitcoin does not really need a liquidity check. Additionally, there were rumors that Facebook acquired bitcoins. However, a couple of days later, when the official reports came out, it turned out that the company does not own any crypto assets.

At least it did not buy BTC in the first quarter of 2021. Thus, bitcoin could not resume growth amid fake news. Perhaps the most significant news was the announcement of the acquisition of bitcoins by Nexon in the amount of $100 million. Nexon is a game company that specializes in online games for PC and mobile. The company's CEO, Owen Mahoney, said that the amount of investment in bitcoin is about 2% of all the company's funds. Presumably, the purchase was made at $ 58,000 per coin. "Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets. In the current economic environment, we believe Bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments," Owen stressed. "In the current economic environment, bitcoin offers long-term stability and liquidity, while maintaining the value of our funds for future investments," Nexon's CEO added. A growing number of global firms including Tesla Inc. and Square Inc. have invested in bitcoin in recent months. More and more firms and large financial institutions have started to accept cryptocurrency as a means of payment. There were also reports that Meizu, the Chinese tech company, increased its investment in bitcoin to $100 million. In general, from time to time there are reports of new purchases of cryptocurrency. However, it is not enough to boost bitcoin.

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From our point of view, we should pay attention to the signals of technical analysis and to the level of $ 55,859. Most likely, even a false breakout of this level may lead to the resumption of the uptrend, even considering that the cryptocurrency left the ascending channel earlier. The question is whether there will be a sufficient number of new investments in bitcoin for the cryptocurrency to continue its growth. After all, without new purchases, there will be no growth. In general, we are still betting on the correction with the targets of $47,000 and $43,852.

The material has been provided by InstaForex Company - www.instaforex.com

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