Today's slaughter in the cryptocurrency market has obviously translated into stocks of technology companies with a wide exposure to digital assets. Tesla (TSLA.US) a big holder of bitcoin, declined 4%. Elon Musk, who spoke positively about Bitcoin in previous months when Tesla bought $ 1.5 billion in digital assets, posted more Bitcoin-critical tweets in recent days that have in some ways contributed to the current selloff. Today Elon Musk simply tweeted that Tesla has "diamond hands" (in emoji form), a phrase that signifies holding on to an investment even as the price drops.
Tesla (TSLA.US) stock launched today's session with a bearish price gap and is currently testing major support at $560.48. However bullish divergence appeared on the Momentum indicator, which may indicate that the bulls have not yet given up. Key mid-term resistance can be found around the $654.21 area and coincides with the downward trendline and 50 SMA (green line). On the other hand, if sellers will manage to uphold momentum then next support at 507.53 may be at risk. Source: xStation5
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Open account Try demo Download mobile app Download mobile appCoinbase (COIN.US) stock tumbled 7% and reached another record low since its April 14 debut (which coincided with Bitcoin's ATH). The website appeared to be down for some users today. Company announced this week that it will sell $1.25 billion worth of convertible debt even though it recently reported solid earnings and revenue growth. Also the company warned of growing competition in crypto trading.
Coinbase (COIN.US) stock hit 429.76 in its April 14 direct listing debut but closed sharply lower and continues a steady decline since then, bouncing from time to time from the lower limit of the wedge formation. Today stock price reached a new all-time low at $209.28. Currently buyers are trying to erase some of the recent losses. The nearest major resistance lies at $249.00. Source: xStation5
Microstrategy (MSTR.US) another company that owns a large amount of Bitcoin, sinked by nearly 8%. However company's CEO Michael Saylor announced via social media that "Entities I control have now acquired 111,000 #BTC and have not sold a single satoshi."
Microstrategy (MSTR.US) stock launched today's session lower, however sellers failed to break below the lower limit of the triangle formation which is additionally strengthened by 200 SMA (red line). Source: xStation5
Meanwhile Square (SQ.US) which also made extensive purchases of the cryptocurrency for their corporate treasuries, fell nearly 3%, while PayPal (PYPL.US) which has implemented a Checkout with Crypto feature that enables customers to buy, hold and spend cryptocurrency with PayPal merchants is holding reasonable stable, losing only 0.6%.
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