A significant trendline that the price of bitcoin recently crossed for the first time in more than a month is currently being tested as support.
Against it, there is support
On July 21, just as the market learned that Tesla had sold the majority of its bitcoin holdings, bitcoin made its first test against its new support.
After dropping from its multi-week high of $24,280, data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair battling the $22,800 region.
The two responded swiftly but subtly after Tesla said that its bitcoin holdings had fallen by over $936 million, or 75%, in the second quarter. Elon Musk’s CEO comments, which avoided criticizing the largest cryptocurrency directly, seemed to help contain the damage. He made sure to underline that this selloff “should not be viewed as a verdict on Bitcoin” during the company’s results conference call.
Although the move halted many days of persistent bullishness, BTC/USD continued to rise with the traditional equities market as US dollar strength declined from 20-year highs. The 200-week moving average for BTC is $22,800; historically major trendline lost in June as support; only now has it been broken higher.
Bitcoin should be used with caution.
The short-term outlook for on-chain indicators is undetermined. Even though the daily UTs were showing signs of weakness, the data still suggests that the monthly chart is still in the midst of a broad rebound.
- “This could mean that a retest of the 50-day moving average will occur in the near future, but also that we may not have seen the monthly top. Ignore the noise and watch the graphics,” according to this Twitter watcher.
Today, the 200-week moving average and the 50-day moving average were nearly in the same location. In the meantime, several analysts have demonstrated how Tesla sold off its BTC in mid-June.
Inflows into the stock markets peaked last month over a few days, with market makers releasing more than 63,000 BTC (MM).
Data from analytics company Glassnode shows that neither panicky selling nor opportunistic purchasers have significantly changed exchange balances in response to news of the selloff.
