Bitcoin Holds Crucial Support as BTC Struggles Above $33,000 – July 7, 2021
Since July 6,
Following the July 6 breakdown, the bulls could not resume upside momentum as the bears sell on each rally. On July 6, the upward move was repelled at $34,959 as bears attempt to sink the BTC price. Today, buyers are attempting to push BTC prices upward to retest the $35,000 resistance zone. Since June 21, buyers and sellers have been in price tussle between $31,000 and $35,000 price levels.
Presently, Bitcoin is rising and approaching the $34,800 high. If the BTC price faces rejection at the recent high, the bears may want to sink Bitcoin to $31,000 low or below it. This will always attract buying pressure as bulls will buy the dips. If the bulls fail to buy the dips, BTC’s price will slump to $28,000 or $20,000 low. On the other hand, if buyers are successful, BTC/ USD will commence the resumption of range-bound move for few days.
Bitcoin Brutal Second Quarter May Compel Tesla Report Up to a $100M Loss, By Analysts
Tesla first disclosed its $1.5 billion Bitcoin purchase in February. Analysts believe that the electric vehicle manufacturer may have been in trouble waters at the end of the quarter.
Recently, Bitcoin’s price has been dropping when compared with the January price levels. On July 6, CNBC business analyst Kate Rooney indicated that Tesla may face an “impairment charge”. She indicated that the company is required to report the drawdown in a disclosure to the U.S. Securities and Exchange Commission (SEC).
Because of this, Tesla is likely to announce a paper-drawdown of between $25 million and $100 million on its $1.5 billion Bitcoin bet. The report has it that: “Tesla holds crypto as an intangible asset and because of accounting rules, when Bitcoin’s value drops below a certain amount, companies have to mark that down in their financial statements”.
Analyst Kate Rooney indicated that: “Tesla says if Bitcoin’s price falls below the carry cost, or where Tesla bought it, at any time after they bought it, an impairment cost is recognized.”
Meanwhile, BTC’s price is rising to retest the $35,000 resistance zone as BTC struggles above $33,000. The king coin is facing rejection at the $34,800 high. It appears the bullish momentum is likely to be interrupted.
On July 6, BTC’s price was repelled at the high of $35,196 as the market dropped to $33,555. Besides, BTC’s price is approaching the overbought region of the market. Bitcoin is above the 77% range of the stochastic. Sellers are likely to emerge to push down in the overbought region of the market.
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