Bitcoin is recovering slightly from last week’s losses

Mohammed Abdelkhalik
April 29, 2021
Cryptocurrency trading

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Bitcoin Price Forecast – 30th April 2021

Bitcoin experienced a massive decline about a week ago, dropping from $ 55,500 to $ 47,500, since then, Bitcoin spent several days in sideways trading, then made a strong recovery two days ago, however, it remained lower due to strong resistance at $ 55,000.

The Bitcoin price has returned to over $ 53,000 in a rapid recovery from below the key level of $ 50,000, and although the bounce so far looks good, the technical outlook suggests that bearish days await the currency.

BTC/USD chart - 29th April 2021


Bitcoin is recovering after its recent decline

Bitcoin fell to $ 47,500 on April 23, then recovered slightly to $ 50,000, and traded sideways near this level until late April 25, when it collapsed to $ 47,000 and then rose to $ 54,000 by the end of April 26, to be able By keeping its value from further declining.

However, the expectations of new US President “Joe Biden” to raise the long-term capital gains tax for the richest Americans up to 43.4% led to a sharp drop in the bitcoin price.

Tesla sells 10% of its cryptocurrency holdings

Tesla released its earnings report for the first quarter of 2021, which showed it had sold at least 10% of its position for an estimated profit of $ 101 million. Last February, the company bought $ 1.5 billion of bitcoin.

Following this news, both the company and its CEO, Elon Musk, received severe criticism from the crypto community and others, as he was accused of “dumping” his bitcoins on investors to “make a fortune”.

For the other to respond to him and explain the reason for his company’s decision: saying that he did not sell digital currencies Of its own, but it was Tesla that sold 10% of its holdings mainly to demonstrate Bitcoin’s liquidity and an alternative to keeping cash on the balance sheet.

Some analysts believe that Tesla may have been trying to hit a specific target for this first quarter and sold a portion of its bitcoin with this intention, data provided by the New York Times show that the car manufacturer had a quarterly profit of $ 438 million, the company’s highest level ever.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.