Why Tesla’s stock price breakthrough for years? Why has the value of Bitcoin evaporated by 20% in five days?


Global investors continued to press the sell button this week in equity and currency markets as apprehension grew that neither a U.S. recession nor a devastating halt to China’s economic growth will were avoidable. The ASX has been down for six consecutive weeks and is now at its lowest level in more than three months.

Currency and commodity markets were also shrouded in fear. Oil prices retreated near the $100 threshold as the demand outlook was clouded by the months-long lockdown in China. The panicky breakout from the risky asset sent the crypto community into a tailspin as the biggest cryptocurrency, Bitcoin, plunged 20% in five days.


Earlier this week, Tesla’s factory in Shanghai reportedly ran into production problems as China locked down the city of 25 million in a controversial bid to stamp out Covid-19. Although Elon Musk’s company denied an outright shutdown, Tesla stock still fell 9.1% on the account.

More than 15% of U.S. companies with operations in Shanghai said their operations remained completely closed as production capacity was sharply reduced due to a lack of employees and supplies.

The other factor that triggered the sale stemmed from concerns that its founder and CEO Elon Musk might dump more shares to help fund the takeover of Twitter. Two weeks ago, Musk sold $8.5 billion worth of Tesla stock after he struck a deal to buy Twitter with $21 billion of his own money.

As such, Tesla’s stock price has slipped below the long-term trendline in the weekly chart, a dangerous alarm for long-term buyers.

Below this level, it is fair to predict that the price will reach the 100-MA if the momentum persists. On the other side, only a bounce above $855 and the descending trendline can restore buyer confidence in the EV master’s stock.


About Author

Comments are closed.