Crypto Industry News:
It's been 37 days since Tesla announced the purchase of $ 1.5 billion in Bitcoin in a document filed with the US Securities and Exchange Commission.
While the exact amount of BTC purchased was not disclosed in the document, with a Bitcoin value of between $ 29,000 and $ 37,000 in January, Tesla's investment of $ 1.5 billion could mean the company owns at least 40,000 Bitcoins.
Based on this speculative data and the Bitcoin price increase since late January, Tesla's minimum 40,000 BTC is now worth $ 2.2 billion. This figure translates into an unrealized profit of $ 700 million.
So Tesla has almost $ 19 million in unrealized profit per day within 37 days of announcing the purchase of Bitcoin.
The electronic vehicle maker earned $ 31.54 billion in sales of 499,550 cars in 2020, a profit of $ 721 million. Tesla's ownership of Bitcoins nearly overshadowed this profit margin, especially considering that the above analysis only considered the company's likely minimum stock of BTC.
Taking car sales for the year as a constant average, Tesla sold approximately 1,368 cars a day with a daily profit of $ 1.98 million.
As mentioned earlier, Tesla was making $ 19 million in unrealized gains per day while holding Bitcoin. To achieve this feat in its normal operations, the company would need to increase daily car sales by more than 860%.
Thanks to Bitcoin, which some predictions say will experience a year-round boom and six-digit values, Tesla's unrealized gains from ownership could outweigh car production by several orders of magnitude.
Technical Market Outlook:
After the BTC/USD pair had broke through the short-term trend line resistance around the level of $58,233 the rally was capped at the level of $60,084. It looks like bulls have a problem to increase the momentum and rally higher. The next technical support is seen at the level of $56,733 and if this level is violated, then the corrective cycle might expand towards the next technical support seen at $54, 314 and then $49,422. The intraday technical resistance is seen at the level of $60,609. Please notice the market keep making higher highs on the daily time frame despite the bearish divergence building since the level of $41,917.
Weekly Pivot Points:
WR3 - $77,718
WR2 - $70,065
WR1 - $65,682
Weekly Pivot - $57,463
WS1 - $53,537
WS2 - $45,060
WS3 - $41,147
Trading Recommendations:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken on the e daily time frame chart.
