Bitcoin And Crypto Find Support As Tech And Tesla Slump

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Last Updated on 4 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin is trying to hold the $50k support level while Ethereum is trading near $1,600 and Cardano seemed unable to break $1,20.

Overall, it looked once again that a selloff in tech markets was holding back further investment in crypto. Over in the US, the tech-heavy Nasdaq fell 2.7% and Tesla slumped almost 5%.

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Bitcoin in March

The historically bad month of March has been unable to live up to it’s name so far. The largest cryptocurrency is up some 10% this month so far and is well off a fearsome drop to around $43,000 which took place last week.

However, even the $50k level is still well off it’s ATH of $58k reached almost two weeks ago. Bitcoin gained some 5% on Wednesday to trade just above $50,000, a level most analysts say is needed as a support that must be kept for several days if the most famous cryptocurrency wants to make the jump to $60k.

Most traders agreed that there was a clear correlation with tech markets for crypto at this point given the larger percentage of institutional investors that decide to take their money out of crypto when tech falls.

Famed trader Peter Brandt even claimed that the laser eyes meme (which we claimed marked the temporary top of Bitcoin) was the reason why in the short term he was bearish on Bitcoin.

Anthony Pompliano responded by saying Brandt misunderstood the meme.

Tesla Finds competitor

Tesla stock, whose falls some say could now work as a domino-effect on Bitcoin because of Elon Musk’s $1.5 billion investment, fell almost 5% yesterday.

This is because the company’s competitors seem to have finally understood that an EV (electric vehicle) sells better if it looks like a cool car, such as Tesla does. Ford seems to have understood this and has found a winner with its Mustang Mach-E, which is taking back market share from Tesla in the EV sales space.

According to an analyst note, estimations say that Tesla’s:

Market share of the EV market in the U.S. dropped from 81% in February of 2020 to 69% in February of 2021.

In fact, the US stock markets are having an overall flat year so far with the Nasdaq up less than 0.9% since New Year and the S&P500 up 1.7%.

Fears of a crash as predicted by many analysts is worrying investors up to a point where some of them prefer to keep their cash on the sidelines.