Bitcoin, Ethereum, Altcoins Follow Stocks Down Despite Elon Musk Is Open to Buy BTC Again After Selling 75% of Tesla’s Stash
- Bitcoin moved below USD 23,000 again.
- Ethereum is back below USD 1,500, XRP is struggling near USD 0.35.
- SOL and MATIC are down over 10%.
After spiking above the USD 24,000 level, bitcoin increased its volatility as Tesla said it sold 75% of its BTC holdings, or USD 936m worth of bitcoin, in the second quarter, in an attempt to raise cash.
However, Tesla’s chief Elon Musk stressed that “this should not be taken as some verdict on Bitcoin” as the company sold BTC as they “were uncertain as to when the COVID lockdowns in China would alleviate” and it was important for the company to maximize their cash position.
“We are certainly open to increasing our Bitcoin holdings in future,” Musk said during an earnings call, adding that they have not sold their DOGE.
However, despite this reassurance, the crypto market resumed its decline, following a correction in the Asian stock market.
BTC is currently (03:48 UTC) trading near USD 22,800 and is down almost 3% in a day and up 13% in a week.
Similarly, most major altcoins are also correcting gains. ETH is down almost 5% and trading below the USD 1,500 zone. XRP trimmed gains and now struggling near the USD 0.35 level. ADA declined almost 9% and traded below the USD 0.50 support.
Total market capitalization
After a clear move above USD 23,500, bitcoin price extended gains. BTC was able to spike above the USD 24,000 level. However, the bears were active near the USD 24,200 level and pushed the price below USD 23,000. On the downside, an initial support is near the USD 22,500 level. The next major support is near the USD 22,250 zone, below which the price could drop to USD 21,200.
An immediate resistance is near the USD 23,500 level. The next major resistance could be USD 24,000, above which the price could start a fresh increase.
Ethereum price struggled to stay above the USD 1,600 resistance. ETH trimmed some gains and declined below USD 1,500. It is now trading near USD 1,490, dropping 5% in a day and trimming weekly gains to 34%. The next major support is near USD 1,450, below which the price could start a stronger downside correction.
On the upside, the price could face sellers near USD 1,550. The next major resistance is at USD 1,600, above which the price could start another increase.
ADA, BNB, SOL, DOGE, and XRP price
Cardano (ADA) failed near the USD 0.55 resistance zone. There was a bearish reaction and the price declined 9%. It moved below USD 0.50 and might revisit the USD 0.465 level.
BNB struggled above the USD 272 resistance and started a downside correction below the USD 262 level. The price is now struggling to stay above the USD 250 support, below which it might dive to USD 235.
Solana (SOL) is down almost 12% and is trading near the USD 40 level. If there is a close below the USD 40 support, the price might decline towards the USD 38 support zone.
DOGE tested the USD 0.075 resistance zone. It is now correcting lower below the USD 0.0700 support. If the bears remain in action, the price might drop towards the USD 0.065 support.
XRP price struggled below the USD 0.388 resistance. It trimmed gains and now consolidating near the USD 0.35 level. Any more losses might send it towards USD 0.332.
Other altcoins market today
Many altcoins are in the red zone, including DOT, MATIC, AVAX, SHIB, TRX, UNI, CRO, LINK, ETC, XLM, ALGO, BCH, and VET. Out of these, MATIC declined 14% and approached USD 0.80, becoming the worst performer among the top 100 cryptoassets by market capitalization today. The price is still up 27% in a day.
Overall, bitcoin price is correcting gains from the USD 24,200 zone. If BTC drops below USD 22,500, it could even dive towards the USD 21,200 level.