Tesla is likely to start accepting BTC as payment again
Bitcoin price rallied earlier in the week after Tesla CEO Elon Musk said his company is most likely to start accepting it as payment again. As a reminder, in May, the electric carmaker said that it would no longer accept the cryptocurrency for purchases, citing concerns over the environmental impact of bitcoin mining.
As a result, BTCUSD bounced strongly from recent lows around $29,200 to extend the ascent to $32,900 earlier today. As the prices came close to the $33,000 figure, traders proceeded to profit-taking, this pushing the digital currency back below the 20-DMA that continues to act as resistance.
Earlier, the plunge below $30,000 came on the back of news that the New Jersey attorney general issued a letter to crypto lending firm BlockFi, ordering it to stop offering interest-bearing accounts.
Unless bitcoin can climb above $33,000, one should expect more downside despite the recent rally. The coin needs a daily and weekly close above this barrier in order to see more sustained gains in the coming days and weeks. However, it looks like downside risks continue to persist at this stage, with the overall path of least resistance remaining to the downside.
The market needs some strong fundamentals that could derail the current bearish trend and push bitcoin and other cryptocurrencies north. For the time being, however, it looks like BTCUSD could dip back to $30,000 once the recovery impetus wanes. Adding to a gloomy picture, a growing crackdown on the industry from regulators around the world keeps the market under pressure.
In the immediate term, bitcoin needs to hold above the $32,000 figure in order to stay afloat and resume bullish attempts. Otherwise, the $31,600 region will come into market focus, followed by the $30,700 intermediate support.