BTC/USD pulls back from five-week high as Tesla reveals Bitcoin selloff

  • BTC/USD remains under pressure after breaking the two-day uptrend around the monthly peak.
  • Tesla reveals a major selloff of its Bitcoin holdings in the latest earnings report.
  • The rebound in the US dollar on recession fears is also teasing sellers.

BTC/USD bears the brunt of Tesla’s aversion to Bitcoin as traders retreat from the monthly peak. However, the Bitcoin pair remains slightly bid at around $23,200 at the start of Thursday as traders brace for further clues.

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

It should be noted that the rebound of the US dollar amid the return of recession fears could have also weighed on BTC/USD prices. That said, the US Dollar Index (DXY) is drooling around 107.05 after bouncing off a fortnightly low the previous day. The DXY’s earlier gains could be tied to market fears of a recession emanating from Europe and strong inflation data from the UK, as well as Canada. Sino-US tensions and China’s covid issues have also supported safe-haven demand for the US dollar.

Next, updates regarding the market risk profile and stocks could help determine short-term BTC/USD moves, as sour sentiment could join Tesla news to weigh on the Bitcoin pair.

Technical analysis

BTC/USD traders are witnessing an immediate defeat of the 50-day EMA level around $23,400 ahead of the May low near $25,380. Meanwhile, the pullback remains elusive unless it stays above the previous resistance line from June 21 at $22,950.

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