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Vladimir Zernov
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Bitcoin Video 13.05.21.

Tesla Stops Accepting Bitcoin As Payment Due To Environmental Concerns

Bitcoin declined to the $46,000 level after Tesla stated that it stopped accepting Bitcoin as payment for its cars. However, Bitcoin quickly managed to get back above the $50,000 level as speculative traders rushed to buy the dip.

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Tesla began to accept Bitcoin as payment in March of this year, so it’s a quick change of direction for the company. The company noted that mining Bitcoin came at a significant cost to environment, and Tesla would resume accepting Bitcoin when it transitions to more sustainable energy.

Not surprisingly, the announcement put material pressure on the whole crypto market, although most cryptocurrencies have already managed to find buyers who were waiting for such a pullback.

Meanwhile, Bitcoin Dominance declined to new lows as the share of Bitcoin’s market capitalization as a percentage of total crypto market capitalization declined after the sell-off which was triggered by Tesla’s decision.

While Bitcoin managed to find support below the $50,000 level after the recent sell-off, environmental concerns may become a longer-term bearish catalyst for Bitcoin, and it remain to be seen whether traders will be able to quickly forget about Tesla’s decision.

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Technical Analysis

Bitcoin managed to settle above the resistance at $48,500 and is currently trying to settle above the $50,000 level. In case this attempt is successful, Bitcoin will head towards the resistance at $52,500. This resistance level has been recently tested and proved its strength.

In case Bitcoin settles above $52,500, it will move towards the resistance at the 50 EMA near $55,000. A move above this level will open the way to the test of the resistance at the recent highs at $58,000.

On the support side, the previous resistance at $48,500 will serve as the first support level for Bitcoin. If Bitcoin declines below this level, it will move towards the recent lows at $46,000. A successful test of this level will open the way to the test of the support at $44,000.

For a look at all of today’s economic events, check out our economic calendar.

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