Bitcoin is back above the $23,000 level despite Tesla’s announcement that it had sold 75% of its BTC holdings. In this way, the recovery showed that the bulls may be strengthened.
Although it is not possible to say that there was a change in trend, the recovery was celebrated by traders. Now, there is hope that Bitcoin can recover its value by $26K.
Interestingly, Tesla was not solely to blame for the mass institutional sales. According to Arcana Research Analyst Vetle Lunde, BTC sales did not start with Tesla, but rather with the Luna Guard Foundation and the collapse of Terra (LUNA)
Furthermore, BTC selling pressure has hit from miners to Three Arrows Capital (3AC) and Celsius.
Bitcoin
While the analysis may not be self-evident enough, it does show the market’s liquidity problems, which could mean that more institutions can sell their holdings.
“If that happens, another BTC capitulation could be imminent,” said Aashna Dunwani.
As the analyst pointed out, the cryptocurrency’s “extreme market condition” may not be over. That is, a new fall would also worry small investors and, with that, large investors could control the market.
Anyway, with the accumulated dump of 236,237 BTC, the current BTC price appears to have a stronghold at $23,000. As per the price chart, the trend for the next few days may remain bullish as it is now.
According to the analyst, this is because the 20-period EMA is solidly above the 50-period EMA. In this way, “buyer control can seem much more potent than institutional selling pressure,” she said.
Meanwhile, analysis of a longer period may appear to keep Bitcoin buyers strong.
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