- Tesla is selling 75% of its BTC holdings at an average price of $29,000.
- The price of bitcoin has yet to show any correlation with the sudden bearish news.
- The invalidation of the bullish macro thesis remains at $13,880.
Tesla reportedly sold 75% of its BTC holdings as the company faced cash constraints in the second quarter. The innovative electric vehicle company sold over $950 million worth of its bitcoin assets at an average price of $29,000.
Bitcoin price is not set by Elon
CEO Elon Musk attributed Tesla’s financial crisis to a manufacturing standoff due to the coronavirus pandemic in Shanghai. He also reassured his confidence in bitcoin, saying he “intends to buy more in the future.”
Bitcoin price is currently being auctioned at $22,400. The price of bitcoin reacted little to the bearish news as the uptrend channel was broken on the intrahour timeframe.
BTC/USDT 2-week chart
While fundamentalists may have mathematical theories about Tesla’s future impact on the original peer-to-peer cryptocurrency, the methods are still intact. The market capitalization of bitcoin remains above one trillion.
In terms of Elliot Waves, Bitcoin maintains its macro bullish stance. $13,880 is the level of invalidity to call this an exit. If $13,880 is affected, the entire macro account is at risk and a bear market could emerge targeting coronavirus lows at $3,500.
In the following video, Netcost-Security analysts delve deeper into bitcoin price action by analyzing key market levels.