27.04.202114:24 Forex Analysis & Reviews: BITCOIN: Tesla Inc. sells its bitcoins

The bitcoin exchange rate continues to recover after a major drop in the area of $48,000, but now everything is not so simple from a technical point of view. But before we talk about it, it is necessary to mention that Elon Musk and Tesla Inc. sold about 10% of their bitcoins. This was done not in order to fix the profit, but on the contrary - to demonstrate the liquidity of bitcoin. Musk also said that he has kept his personal investments in cryptocurrency.

Tesla's earnings report says that the company, which bought more than $1.5 billion worth of bitcoins earlier this year, received $101 million in net income from their partial sale. In his tweet, Musk wrote that in this way he proved the liquidity of bitcoin as an alternative to storing cash.

And although many still consider investing in bitcoin quite risky - Tesla's chief financial officer Zachary Kirkhorn, immediately after the publication of the income statement, said that the company believes in the long-term value of bitcoin as a new investment tool.

Let me remind you that at the beginning of this year, Tesla announced the purchase of a digital currency for $1.5 billion. It was not said at what rate bitcoin was purchased, but many experts believe that this price range fluctuates in the region of $40,000–$43,000. This statement led to a new wave of bitcoin growth.

For many traders, bitcoin, other cryptocurrencies, and tokens are still purely speculative investments and not a legitimate alternative to cash. Many argue that the token does not work as a means of saving or a unit of account due to its volatility. Another thing is the launch of digital currencies, which is expected soon from many global central banks. However, Morgan Stanley believes that after the launch of digital currencies, cryptocurrencies will still exist, as they serve slightly different purposes and are used in a completely different way – for example, as a means of saving. Some people do not trust fiat money and banks – cryptocurrencies are quite an appropriate alternative for them. Bitcoin and other tokens can also act as a fairly good speculative tool.

As for the technical picture of bitcoin, there are currently quite clear ideas about its future direction. Until the moment when trading is conducted above the level of $52,600, we can expect a more active growth to the resistance of $57,000, and only after overcoming this level can we say that bitcoin has rushed to the area of new historical highs. If the bears again push the level of $52,600 or start problems with growth above $57,000, where, by the way, the 50-day moving average passes, then most likely we will see another major wave of falling cryptocurrency. This time, with the breakdown of support at $47,500 and the exit to the lows of $43,000 and $37,000. I wonder what the same Elon Musk will say later, when his investments of more than $1.5 billion begin to show colossal losses.