Tesla has just announced that they sold almost all of their Bitcoin holdings, during the second quarter of the current year. To be precise, they got rid of 75% of the BTC reserve that they had bought in 2021.
The sale of this percentage was made at the beginning of the current quarter, coinciding with the accentuation of the downward trend of the crypto market.
Tesla’s decision meant losses, since the purchase had been made when the price of the cryptocurrency was around $ 40,000.
According to Tesla’s financial results post today, Wednesday, July 20, the total amount of the sale was $936 million, leaving about $210 million in the company’s BTC reserve.
Elon Musk noted that the decision was made due to the uncertainty generated by the pandemic, and the tightening of restrictions in China. In this scenario, the company sought to maximize liquidity.
At the time, Tesla came to become the 2nd company with the most Bitcoin holdings, only below MicroStrategy. While this injected positivity into the market, today the situation is completely opposite.
What can we expect from the Bitcoin price after Tesla’s move?
It is possible that the strong selling has contributed to the bearish speed seen at the beginning of June, however, it is impossible to confirm that this has been the case. In addition, the total coins sold is a small percentage of the more than $40,000 million that the Bitcoin market moves daily.
Despite the bad, Elon Musk assured that they are open to increasing Bitcoin holdings in the future, so the transaction should not be taken as a verdict of the company towards cryptocurrency.
However, the weight of the news on market sentiment is undoubted.
Elon on several occasions claimed to have “diamond hands”, a term used among crypto investors to refer to those participants who are able to resist with their coins despite the volatility and risk that this represents.
However, with the recent move of the company, the billionaire has looked bad in front of the community.
Technical analysis of the price
The recent momentum of the Bitcoin price seems to have achieved resistance near $24,000, and the Tesla news coincided to generate a downward correction.
Now the question is how harmful the negativism injected by Tesla’s movement will be.
As we saw in previous paragraphs, the holdings were really not that significant for the daily volume that Bitcoin handles, and in addition, the sale was made several weeks ago.
We continue to see a small short-term uptrend, which has the space cleared up to $27,750.
Bitcoin still needs to perform a broader pullback on the weekly chart, perhaps towards $30,000. At the moment, the recent increase is nothing more than a necessary respite.
To confirm that the major trend is being resumed, we should first see in this time frame, continuous higher and higher lows.
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