Bitcoin was trading lower in today’s session, as it was revealed that Tesla had sold 75% of its holdings in the cryptocurrency. The news comes following the company’s Q2 earnings call, where they confirmed converting the token into fiat currency. The news also brought down Ethereum.
Bitcoin
Following a recent run of gains, bitcoin (BTC) fell lower in today’s session, after it was revealed that Tesla had sold 75% of its holdings in the token.
Tesla stated that, “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency.”
As a result of this, BTC/USD fell to an intraday low of $22,707.51 in today’s session, which comes less than 24 hours after sitting at a peak of $24,196.82.
The momentum shift is due to the fact that price strength was almost overbought. Wednesday’s 14-day RSI reading was close to 62.
Now, this resistance is held with an index of 57. A floor of 51 would be its next target.
Bitcoin could move towards $20,000. If this bearish sentiment continues to grow, it may begin to trend lower.
Ethereum
Ethereum (ETH) also saw its recent winning streak snapped, as the token fell back into the red during Thursday’s session.
Following a high of $1,612.65 on Wednesday, the world’s second-largest cryptocurrency slipped to a low of $1,472.19 today.
As crypto sentiment turned bearish in the earlier session, the global market caps trading were 3.2% lower by the end of the writing.
Looking at the chart, ethereum’s Relative Strength Index was tracking above 70 during yesterday’s session, which was a three-month high.
The index is now at 62 as the bears are back in the market, and some anticipate further drops this week.
The $1,300 support level will be an important point for bears if prices fall.
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What will happen to ethereum as it continues to fall into weekend? Please leave your comments.
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