BTC/USD retreats from five-week top as Tesla reveals Bitcoin sale

  • BTC/USD remains pressured after snapping two-day uptrend around monthly peak.
  • Tesla reveals significant sale of Bitcoin holdings in latest earnings report.
  • US dollar rebound on recession fears also tease sellers.

BTC/USD bears the burden of Tesla’s dislike for Bitcoin as bulls retreat from monthly peak. However, the Bitcoin pair remains mildly bid at around $23,200 during early Thursday as traders brace for fresh clues.

“Tesla sold $936 million worth of bitcoin in the second quarter, more than a year after the company bought $1.5 billion of the cryptocurrency at the peak of its massive growth and popularity,” said Reuters. The news also mentioned that the automaker sold 75% of its Bitcoin holdings. Tesla’s CEO Elon Musk added that Tesla did not sell any of its dogecoin, a meme-based cryptocurrency that he has touted, as reported by Reuters.

It’s worth noting that the US Dollar’s rebound amid the return of the recession fears also could have weighed on the BTC/USD prices. That said, the US Dollar Index (DXY) dribbles around 107.05 after bouncing off a fortnight low the previous day. The DXY’s prior gains could be linked to the market’s fears of recession emanating from Europe and strong inflation data from the UK, as well as from Canada. Also underpinning the US dollar’s safe-haven demand were the Sino-American tensions and China’s covid woes.

Moving on, updates surrounding the market’s risk profile and equities could help determine short-term BTC/USD moves as sour sentiment could join Tesla’s news to weigh on the Bitcoin pair.

Technical analysis

BTC/USD bulls witness immediate defeat from the 50-day EMA level surrounding $23,400, ahead of May’s low near $25,380. Meanwhile, pullback remains elusive unless staying beyond the previous resistance line from June 21, at $22,950. 

 

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