By Franklin Smith
Briefly–
- BTC/USD sees pressure after snapping a 2-day upside near monthly highs.
- Tesla’s latest earnings confirm a substantial sale of BTC holdings.
- USD rebound amidst recession fears also triggered sellers.
BTC/USD experience the heat of dislike by Tesla as Bitcoin bulls retreat at monthly highs. Nevertheless, the BTC pair was mildly bid near $23.2K early on Thursday as contemplated new clues.
Meanwhile, Tesla sold Bitcoin worth $936 million in Q2. That comes more than one year after the Musk firm purchased the crypto worth $1.5 billion during popularity and massive growth. That’s according to reports from Reuters.
The news highlighted that the electric car manufacturer sold about 75% of its $BTC holdings. Meanwhile, Tesla executive stated that the company was yet to sell its Dogecoin, a meme token that Elon Musk has flaunted.
Meanwhile, the US dollar bouncing back amidst recession fears could have forced BTC/USD down. Remember, the USD Index (DXY) dribbles at 107.05 following a bounce off a 2-week low yesterday.
The DXY seemed to gain after the recession fears emerged from Europe and massive UK and Canada inflation data. Also, China’s COVID issues and Sino-American tensions underpinned the USD’s safe-haven demand.
Meanwhile, updates around equities and the market’s risk profile might help gauge BTC/USD near-term moves as deteriorating sentiments may accompany Tesla updates to send the BTC pair lower.
BTC Technical Analysis
BTC/USD bulls stare at an immediate defeat at the 50-day Exponential Moving Average near $23,400. The rejection came after the bellwether crypto remained elevated, translating to relief for market participants who have dealt with lows over the past few months.
Nevertheless, the crypto remains primed for declines unless it holds above its previous resistance level of 21 June, at $22,950.
Bullish Estimates Could Have Been Premature
Today’s sudden pullback might also mean a lesson to cryptocurrency investors who already called in the bear market end. While Bitcoin’s pullback remains mild, several alts saw deeper cuts as the latest price surges opened profit-booking opportunities for investors.
For instance, ETH layer2 solution Polygon lost 11.5% after an impressive week that saw it gaining 87%. Airweave declined by 10.84%, whereas Filecoin noted a 10.2% slump.