Bitcoin Trend and Price after Elon Musk Tesla Move

After Elon Musk reverses the decision to accept Bitcoins as a payment method to buy Tesla, FUD has taken over and the market suffered a flash decline. Will the drop continue? Let’s find out.

On May 13, 2021 Elon Musk Tweeted “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions” He also added “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as
mining transitions to more sustainable energy. We are also looking at other cryptocurrencies
that use <1% of Bitcoin’s energy/transaction.”.

Tesla and Elon Musk still hold long billions of dollars of bitcoin but FUD  caused the investors and traders to cash out and prices fell to $46000 and , the worse, Tesla shares also tasted the dip.

There is a lot going on both fundamental and technical perspectives, now let’s take a closer look on technical analysis and see what does the chart say.

From a technical perspective, we see that Bitcoin has been in a rising channel since February and reached an ATH of $65K in the middle of April. Near the end of April, Bitcoin printed a lower low @ $47K where it temporarily broke below the channel before quickly getting back within the channel, upon which price started to rally. The key area from that point was the golden pocket of $59-60K.

btc chart
BTC Chart

 Bitcoin needed to break above that zone in order to invalidate the lower low and continue the uptrend. Bitcoin spent many days retesting that level multiple times. Just as it seemed as if Bitcoin would finally break through $59K, Elon Musk’s tweet sent the price of Bitcoin crashing to a low of $46K. And thus, we now have a lower low, followed by a lower high, followed by a lower low, which technically means that we have entered into a bear market.

Bitcoin intraday levels:

Current Price (USD): $50690

Trend: Neutral, Consolidating

Volatility: Very High

Support: $48520-$47672

Resistance: $51468

About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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