Bitcoin price took a massive hit after Sunday’s Twitter feud between Tesla CEO Elon Musk and the crypto community. Musk threatened to dump all of Tesla’s Bitcoin holdings during the heated exchange, a tweet that negatively affected the crypto market.
Bitcoin prices on the BTC/USD pair are off nearly 6% on the day and more than 13% in the last three days, as the impact of Musk’s threat pervaded the market and instilled a high level of FUD.
Data released by ByBit shows that $2.4 billion of long positions have been liquidated since Musk’s Twitter threat, doubling the liquidations seen in the last 12 years.
Musk had earlier pulled Tesla away from the path of accepting Bitcoin payments for its products, citing environmental concerns surrounding the use of fossil fuels to power Bitcoin miners. The announcement did not go down well with many in the Twitter community, considering the monumental profit Tesla made from its BTC holdings in April 2021.
Technical Levels to Watch
The support at 43569 remains under tremendous pressure, as it struggles to carry the weight of the offloading of Bitcoin from high net-worth owners. If this support capitulates, we could see a price push towards 41,017 (6 February high in role reversal), with a potential drop towards 40,000 and even 37,455 squarely on the cards.
On the other hand, it has to take a push above 50,000 psychological resistance to reignite bullish momentum, with Bitcoin prices needing to clear 46,203 and 48,000 to achieve this price level. Only a break of 63,770 allows the BTC/USD pair to recover the uptrend, and this move needs to transcend barriers at 52,672, 55676, 58363 and 60054, in that order.