Bitcoin [BTC] is back above the $ 23,000 level despite the announcement by Tesla to have sold 75% of its BTC equity investments.
Recall that BTC lost its $ 24,000 to $ 22,000 position when the automaker released its second quarter (Q2) report. However, BTC eventually recovered to be trading at $ 23,639 during press time.
Interestingly, Tesla wasn’t the only culprit of massive institutional sales. According to Arcana research analyst Vetle Lunde, the BTC dump didn’t start with Tesla. The analyst said the trend seemed organized.
Around the same time, Tesla sold 75% of its holdings in BTC. We estimate Tesla’s sales to be 29,060 BTC at an average price of $ 32,209. pic.twitter.com/L4FawsrpSH
– Vetle Lunde (@VetleLunde) July 21, 2022
Lunde took a closer look at how it began with the collapse of the Moon, the selling pressure of miners’ BTC, up to the Three capital arrows (3AC)And Centigrade challenges.
While the analysis may not be obvious enough, the liquidity problems faced by many cryptocurrency companies could mean that more institutions could sell their holdings. If that happens, another BTC capitulation may be imminent.
However, BTC seems to care less about all of these sellers as it has pumped $ 4.29 at its current price. However, the “extreme market condition” of cryptocurrencies may not be over. This update would also affect retail investors as institutional powers seem willing to control market movements.
Up from here
Even with the cumulative dump of 236,237 BTC, the current price of BTC appears to have a stronghold at $ 23,000. According to the price chart, the trend for the next few days it may remain as bullish as it is now.
This is because the 20-period EMA (blue) is firmly above the 50-period EMA (yellow). With this, buyer control can seem far more powerful than institutional selling pressure.
Likewise, longer-term analysis may appear to be true to the strength of Bitcoin buyers. While the 200 EMA (green) seems close to the 50 EMA, the 50 EMA (yellow) still slightly replaces it. In a way, it hinted at longer bullish sentiments.
Is it over for the bears?
With BTC demonstrating incredible resistance to selling pressure, it could be assumed that the bear market may be nearing its end. However, it could be a false call, especially in the long run.
The proximity of 50 and 200 EMA could be a reason for this projection.
However, the possibility of another Bitcoin capitulation is highly unlikely. This does not mean that bearish signals cannot emerge anytime soon. At this stage, it might be a good decision for investors to be cautious and watch where the next market moves.