Is Elon Musk’s Tesla Selling $760 Million in Bitcoin?

Amid the ongoing price correction in the cryptocurrency market, Elon Musk's Tesla has moved a large amount of Bitcoin (BTC) to an anonymous wallet. On October 16, 2024, on-chain intelligence firm Arkham Bex (formerly Twitter) revealed that electric car giant Tesla had transferred 11,500 BTC worth $760 million.

Is Tesla Selling BTC Holdings?

This significant BTC transfer has raised concerns about whether Tesla is selling BTC holdings or what they plan to do next. However, this is the first time Tesla has moved BTC holdings in the past two years. According to the data, Tesla is the fourth largest owner of BTC, following MicroStrategy, Mining Marathon Digital and Riot Platform.

Following this significant BTC transaction, Tesla did not publish any comments. But despite this popular BTC movement, asset prices have remained stable and there have been no major changes in the exchange, nor has it been dumped by major whales.

BTC current price momentum

At press time, BTC is trading around $66,880 and has experienced a modest price increase of over 1.35% in the last 24 hours. During the same period, the trading volume increased by 20 percent, which showed high participation from traders and investors.

Technical analysis of Bitcoin, will the price go down?

According to expert technical analysis, BTC is currently facing strong resistance at the upper border of a descending channel pattern. This is the sixth time since March 2024 that the world's largest cryptocurrency has reached this level.

Historical data shows that whenever BTC reaches this level, it experiences significant selling pressure and a price drop of more than 20%.

However, this sense of timing is very different as we approach the presidential election in the United States. The data shows that in the last two elections, the crypto market experienced a significant rally in October before the election.

BTC's Bearish On-Chain Metrics

Additionally, analyst firm CoinGlas on the chain indicated weak market sentiment among traders in the past four hours. According to the data, BTC's long/short ratio currently stands at 0.89, indicating bearish sentiment.

Currently, 52.7% of top traders hold short positions, while 47.3% hold long positions.