As of the time of writing, the fear and greed index is displaying extreme fear as the indicator tilts closer to the extreme and indicates 20. The current reading is a result of rumours filling the market as to Tesla selling a fraction of its current BTC bag.
The crypto market was widely affected by this humour as various cryptocurrency began to dip. Bitcoin, for example, dropped to as low as $43,860 on some exchange, losing more than 20% in the last seven days as large seller congestion trailed the rumour.
Ether recorded a new low in the last ten days as dipped to $3,345, losing more than 8% in the last 24 hours and Binance coin lost almost 10% as the price correction halted at $534.
Before the spread of the rumour, Elon Musk said that ideally, Doge speeds up block time 10X, increases block size 10X & drops the 100X. Then it wins hands down. Matching this tweet with the current rumour, the Technoking of Tesla may continue to speak ill of bitcoin until BTC is finally defeated ‘hands down’.
The next few days will see various cryptocurrency surge back to how they traded before the rumour hit. The buyers will capitalise on the current market fall and stage a massive buyback that will see crypto’s largest coin trade above $50,000. As of press time, the buyback has began and BTC is trading above $45k.
Ether and BNB are also recovering as they are crossing various price resistance. Things may be very bullish for dogecoin as the next few days may see the coin hit an all-time high as a result of Elon musk tweets.
Any further negative news that may hit the market in the coming days may rock the market even more as BTC may trade below $40k for the first time in months and ether may drop as low as $3,500.
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Author: Gideon Geoffrey