Bitcoin nosedives. What awaits crypto market?

analytics609d2a1f9b0d0.jpg

I have already mentioned that the fall in the number one cryptocurrency was due to comments from Elon Musk. He said that Tesla halted the use of bitcoin for car purchases. This decision is quite typical. Elon Musk does not care too much about the consequences of what he said. Earlier, Musk was already fined by US authorities for $20 million for comments on social networks about shares and their value of companies owned by him. Then the billionaire was accused of manipulating the value of Tesla shares. Musk was also condemned by Tesla investors for commenting too much on bitcoin, stocks, and various digital assets. His comments lead to sharp changes in the value of the company's shares. One of the Tesla investors even wanted to sue Musk. Apparently, Musk did not learn a lesson. Perhaps he gets much more profit on his comments than he loses on penalties. There should be a grain of truth in it. The largest fine for Musk was $20 million and the investment in bitcoin from Tesla is $1.5 billion.

Thus, Musk can afford to pay small fines for his inconsistency, while earning much more. As for Tesla, everything that is happening looks very absurd. One of the most famous companies in the world, whose capitalization exceeds the total capitalization of the ten largest car manufacturers in the world and whose shares have soared by about 8 times over the past year, first declares that it will sell cars for bitcoin. However, after a couple of months, it stops accepting bitcoin as a means of payment for its cars. Who knows what to expect. Maybe in the near future, Tesla will decide to sell cars for Dogecoin, and in a couple of months, the company will also suspend accepting this means of payment. In general, it is called market manipulation. I think we all have witnessed to what levels it brought BTC.

analytics609d2a447f370.jpg

Bitcoin plummeted on the 4H chart. However, on the 24H chart, there were specific technical signals for this. On the 24H chart, the uptrend seems to run out of strength for a long time, and the price could not break the 61.8% Fibonacci level. On the 4H chart, the quote consolidated above the ascending trend line and the slowdown of the upward movement was also noticeable. Thus, this drop in BTC is quote natural. Currently, it is also clearly visible that BTC has fallen to the previous low, so further downward movement now depends on whether it will be able to break this level. the breakout of this level.

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

Pages