After hitting a daily low of $19,309 on July 5, BTC recovered to retest support near $20,400 as bulls and bears battled over control.
A widely-followed crypto analyst has speculated about the future of bitcoin after its recent two-month gains, comparing its price movement to that of a single traditional stock.
Tesla and Bitcoin – Split Pair
The anonymous host of InvestAnswers discussed mean reversion and Tesla highlights in a new mechanism session for his 442,000 YouTube followers. This statistic predicts when the value of an asset will eventually return to its long-term average.
He pointed out that if one observes these two, it is clear that the current price for this bitcoin pair is trading around 0.036. Thus, it is expected to return to the previous level by the end of the year.
Does this mean that the change is long overdue? A blue line can be seen when looking at this graph. We are currently trading near 0.036 with the 200-day SMA nearing 0.024. Tesla has been stagnant for the past 12 months, while Bitcoin is down 70%.
According to the analyst, most assets with inherent value and utility will return to average. Because of this, he is adamant that both Tesla and Bitcoin will be bullish in the second half.
“Short and to the point, no financial advice; everything comes back as long as it isn’t a piece of junk or broken.”
During recessions and downturns, Tesla has performed remarkably well. While it can be predicted that Tesla will reach $1,200 during the next 6 to 12 months, which is slightly more than double, he also predicted that bitcoin will quadruple during that period. So six to twelve months, or until the summer of 2023, is a very conservative estimate.
Currently, the price of the Tesla/Bitcoin pair is 0.036. Is
Is Tesla in trouble?
Conversely, the chart guru said that Tesla’s current bitcoin holdings would result in significant losses in future earnings for the corporation.
They said they would be seriously affected and incur a loss cost of $450 million.
Furthermore, he also thinks that the pair will stumble soon and argues that as the bids start to return, investors should keep an eye on the 0.036 level as it is possible that bitcoin will be bought at this price, And Tesla could fall even further.
According to the latest reports, bitcoin is currently trading at $20,258 and has gained 6.02 percent in its daily value.