Did Bitcoin (BTC) Bottom After Selling Tesla Apex Cryptocurrency?

bitcoin as well as Ethereum traded unchanged, but Dogecoin rebounded as the global cryptocurrency market cap fell 0.9% to $1 trillion at press time.

See also: Best Crypto Debit Cards

Why is it important: The two major coins showed weakness on Wednesday night, along with stocks that closed higher intraday but lost momentum after hours.

S&P 500 and Nasdaq futures were down 0.3% each at the time of publication as investors digested a plethora of gains. The S&P 500 closed up 0.6% on the day, while the high-tech Nasdaq jumped 1.6%.

Macro headwinds continue to blow against Bitcoin, but “peak pessimism” is close to being accounted for, said a senior market analyst at OANDA. Edward Moya.

“Risks remain elevated but bitcoin is now at $24,000 and selling pressure seems to be winding down for now,” Moya said Tuesday in a note seen by Benzinga.

On the income statementElon Muskautomaker Tesla Inc TSLA said he sold 75% of his bitcoin assets and received $963 million from the sale. Last year, he purchased a $1.5 billion Apex coin.

Michael van de Poppe tweeted that Tesla’s sale was one of the reasons for the recent Bitcoin crash. He said that this is also “why we are close to the bottom.”

So, not only forced sale from 3AC, $MOON & $USTbut Voyager, BlockFi and Celsius also cause the market to crash.

In addition, Tesla sold 75% of its #Bitcoin shopping for cash.

That’s what caused the accident.

That’s why we’re close to the bottom.

— Michael van de Poppe (@CryptoMichNL) July 20, 2022

In a separate tweet, the crypto trader noted that without bitcoin earnings, Tesla’s cash flow is “likely to be negative.”

In official cash flow and income statements.

Profit was partially increased from $TSLA through income from #Bitcoin.

This means that their cash flow would probably be negative without a profit on $BTS. pic.twitter.com/yo1HXw8VbB

— Michael van de Poppe (@CryptoMichNL) July 20, 2022

fellow trader Justin Bennett warned investors that the markets looked “a little overwhelmed”. He said, “Maybe there is a cluster of late longs here. Be careful.”

The markets look a bit congested.

Maybe a late long flush here. Be careful.

— Justin Bennett (@JustinBennettFX) July 20, 2022

Chartist Ali Martinez said that Tom DeMark’s (TD) Sequential tool, which can help pinpoint the exact time of trend exhaustion and price reversal, indicates a bitcoin “sell signal” on its four-hour chart.

“A sustained close of the 4-hour candle below $23,600 could trigger a correction for [BTC] up to $22,500 or even $21,670.”

An approach #Bitcoin carefully!

TD Sequential represents a sell signal for $BTS four hour chart. A sustained four-hour candle close below $23,600 could trigger a correction for #BTC up to $22,500 or even $21,670. pic.twitter.com/INZKFAeJJm

— Ali Martinez (@ali_charts) July 20, 2022

Meanwhile, profit-taking in Ethereum has been more robust than in Bitcoin, as the two assets recently diverged. Ethereum has seen far more signs of profit taking. The ratio between transactions in P&L paints two very different pictures for assets with a maximum market capitalization of [cryptocurrencies],” wrote Santiment, a market intelligence platform.

Both #Bitcoin as well as #Ethereum we had a great recovery month in july, but $ETH saw much more signs of profit taking. The ratio between transactions in P&L paints two very different pictures for assets with a maximum market capitalization of #crypto. https://t.co/BM1YzNaAwi pic.twitter.com/fGHizkLmFk

— Sentiment (@santimentfeed) July 20, 2022

Read more: Michael Saylor comments on Tesla’s bitcoin sale: How much did Tesla really sell?