The biggest news today is undoubtedly Tesla’s announcement that it has bought a whopping $1.5 billion worth of bitcoins. The electric car maker said it purchased the cryptocurrency for “more flexibility to further diversify and maximize returns on our cash.” The company has added that it may invest future portion of its assets in digital assets.
This is probably one of the biggest developments for the crypto currency industry. Tesla is going to be a major player in the auto industry and if it starts accepting Bitcoin as a form of payment, it will give the digital currency further legitimacy. As more and more companies start accepting Bitcoin, this will only lead to further increases in demand in a market which is limited in supply. Therefore, the long-term outlook on Bitcoin remains bullish even if it is starting to look quite expensive in fiat currency terms.
Form a technical point of view, with bitcoin breaking to new highs, future dips back to support or former resistance levels should be supported. Once such level is now at $40K which is now the most important near-term support level to watch.
Source: ThikMarkets and TradingView.com
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