As news broke that Tesla had sold 75% of its cryptocurrency holdings, the price of bitcoin fell during the day’s trading. The announcement follows the company’s Q2 earnings call, during which they confirmed that the token would be converted into fiat money. In response to the news, Ethereum also fell.
Following a recent run of gains, bitcoin (BTC) fell lower in today’s session, after it was revealed that Tesla had sold 75% of its holdings in the token.
Tesla stated that, “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency.”
As a result of this, BTC/USD fell to an intraday low of $22,707.51 in today’s session, which comes less than 24 hours after sitting at a peak of $24,196.82.
Ultimately, the shift in momentum comes as price strength was already nearly overbought, with the 14-day RSI tracking near a ceiling of 62 on Wednesday.
This resistance has now firmly been held, with the index now at a reading of 57, and a floor of 51 its next possible target.
Should this bearish sentiment intensify, bitcoin could potentially begin to head lower, moving towards $20,000.
Ethereum (ETH) also saw its recent winning streak snapped, as the token fell back into the red during Thursday’s session.
Following a high of $1,612.65 on Wednesday, the world’s second-largest cryptocurrency slipped to a low of $1,472.19 today.
The drop comes as sentiment around crypto turned bearish earlier in the session, with the global market cap trading 3.2% lower as of writing.
Looking at the chart, ethereum’s Relative Strength Index was tracking above 70 during yesterday’s session, which was a three-month high.
As of writing, the index now sits at 62, as bears have reentered the marketplace, with some anticipating further declines this week.
If prices are to move lower, the $1,300 support point will likely be a point of interest for bears in the market.