How Does Bitcoin React To $930M Tesla’s Bitcoin Sale?

Bitcoin staged its first test of critical support on Thursday July 21 as the impact of the news headline that Tesla liquidated most of its Bitcoin holdings diminished.

The BTC/USD pair is focusing on the $22,800 zone after dropping from multi-week highs of $24,280. The pair had swiftly reacted but comparatively modestly to the revelation by Tesla that its Bitcoin position was reduced 75%, or $936 million, in the second quarter.

Comments by CEO Elon Musk, which avoided direct criticism of the largest cryptocurrency, appeared to help stem the losses. In the company’s earnings call, he stressed that the sell-off “should not be taken as some verdict on Bitcoin.”

The move put an end to several days of rampant upside, BTC/USD rising in line with stocks as United States dollar strength fell from twenty-year highs.

$22,800 marks the 200-week moving average for the pair, a historically significant trendline lost as support in June and only passed in recent days.