Bitcoin Stalls as Elon Musk Reassures Support for the Crypto Industry
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In his latest tweet about Bitcoin (BTC), Tesla’s CEO Elon Musk revealed that the electronic vehicle manufacturer holds about $1.47 billion worth of BTC on its balance sheet. Tesla reported in February that it purchased $1.5 billion in Bitcoin in its 10-k report.
The announcement of the purchase sparked a 57% price surge for the benchmark cryptocurrency within a month. Meanwhile, the company cashed out about $101 million in profits in April, claiming it was a liquidity test. Through this move, the behemoth EV maker boosted its Q1 earnings.
However, the company recently revealed that it recorded a $23 million BTC-related impairment loss in Q2.
At the recently concluded “B-Word” conference, Musk revealed that another of his companies, SpaceX, had also bought an undisclosed amount of BTC. The billionaire also noted that he holds Bitcoin, Ethereum, and Dogecoin. While Musk refused to disclose the exact amount of his crypto holdings, he stated that Bitcoin constituted the highest percentage.
Despite making several bearish comments about BTC after Tesla halted its acceptance program due to the cryptocurrency’s immense carbon footprint, Musk reassured that he was a big supporter of crypto. The CEO also revealed that Tesla would “most likely” resume accepting BTC again.
Key Bitcoin Levels to Watch — July 29
Bitcoin currently has a hard time breaking above the critical $41k pivot zone, despite the underlying bullish bias. The primary cryptocurrency appears to be restrained within the $41k – $39.5k axis, as bulls and bears go at it.
That said, a bearish correction could occur over the coming hours as BTC is in overbought territories. The cryptocurrency faces resistance from the 1775.45 level on our MACD Indicator, making a dip to the $38k area possible in the near term.
Meanwhile, our resistance levels are at $40,500, $41,000, and $42,000, and our key support levels are at $39,500, $38,500, and $37,500.
Total Market Capitalization: $1.55 trillion
Bitcoin Market Capitalization: $748.5 billion
Bitcoin Dominance: 48.3%
Market Rank: #1
