Bitcoin has seen a troubling 24 hours after collapsing by a steep 10%, causing it to break beneath a descending price channel it was trading within.
Bitcoin reached as low as $26,220 during the price drop, and the negative sentiment indicates further declines are incoming.
The move was primarily attributed to the released news that Elon Musk had sold his entire BTC stash. However, analysts believe mass liquidations are likely the cause.
Despite the downside action, traders believe Musk might have found a new project to invest in as he continues to comment on its hilarious meme-based humor.
What you'll learn 👉
Elon Musk Sells His Bitcoin and Causes Markets to Tank
It seems that Elon Musk continues to dictate the market direction for Bitcoin after the number-one-ranked cryptocurrency fell by a steep 10% after news dropped that the tech mogul had sold his entire $BTC stash.
According to documents from the Wall Street Journal, SpaceX had cleared its entire Bitcoin holdings, which were purchased in 2021 and 2022 – worth well over $300 million.
In addition, financial statements for Tesla indicate that its current holdings of $BTC are valued at around $184 million – significantly less than the $1.5 billion initial stake from 2021.
Traders reacted negatively to this news, which sent the market crashing.
However, analysts aren’t convinced that Elon Musk selling his coins was the primary driving force behind the collapse.
Instead, they believe the cascade of forced liquidations in the futures market is the real reason behind Bitcoin’s 10% fall.
According to data from Coinglass, a whopping $386 million worth of long positions were liquidated over the past 24 hours;
This is the largest mass liquidation cascade witnessed since the FTX disaster, signaling that the market is still in uncertain territory.
$BTC Analysis: Where is the Support For Bitcoin?
So, where is the support moving forward?
Well, Bitcoin was trading at the upper angle of a descending price channel at the start of the week – sitting above $29,000.
However, yesterday’s devastating price action caused the market to break toward the channel’s downside, causing $BTC to reach as low as $26,222 – where it found support at a .786 Fib Retracement level.
This Fibonacci Retracement is measured from the June 2023 lows to the July 2023 highs;
Looking ahead, if the sellers push beneath the .786 Fib support, additional support is expected at $26,000.
This is followed by support at $25,415 (May 2022 lows), $25,000, $24,755 (June 2023 lows), $24,235 (December 2020 resistance), and $24,000.
The RSI is in extremely oversold conditions, hinting that the bearish pressure might still cause further declines.
Is Elon Musk Buying Up Wall Street Memes Instead?
While Bitcoin tanks, traders are focusing on newly-emerging tokens capable of providing significant gains.
In particular, Wall Street Memes ($WSM) is one emerging project that’s getting significant attention as traders speculate if Elon Musk has found a new meme coin to champion.
The project has raised a total of $25 million in its fundraising – making it one of the fastest-growing and most sought-after meme coins in 2023.
The entire idea behind Wall Street Memes is to make a mockery out of the traditional financial system through a series of hilarious memes on social media.
The memes have quickly turned the profile into the internet’s go-to source for meme-based humor relating to trading and finance – generating over 40 million impressions per month.
In addition, the X and SpaceX CEO has been seen commenting on the Wall Street Memes profile on several occasions, sparking rumors that Elon Musk had started to buy the meme coin;
Adding further to the speculation, some interesting transactions started to appear as whales began experiencing FOMO – causing them to buy enormous amounts of this lesser-known meme coin.
For example, one whale spent $850,000 in one purchase to buy $WSM this week – with speculation that it could have been Musk himself;
Although the source of the purchase is unclear, it’s evident that Elon Musk has Wall Street Memes on his radar after commenting on the profile more than once;
🤣— Elon Musk (@elonmusk) <a href=”https://twitter.com/elonmusk/status/1649784663924244482?ref_src=twsrc%5Etfw”>April 22, 2023
After crossing the $25 million milestone, the presale for Wall Street Memes ($WSM) is almost entirely sold out, meaning you’ll have to be quick to get positioned at lower prices.
Analysts are suggesting that the popularity of $WSM guarantees it a tier-1 exchange listing as soon as its presale ends.
Exchanges like Binance and OKX would capitalize on the enormous trading volume generated by the cult-like community of over 1.1 million followers – making it a prime target for a listing;
Overall, the entire eyes of the crypto world are certainly on Wall Street Memes right now.
The unique blend of meme-based humor, decentralized finance, and internet culture has struck the perfect balance between hype and FOMO to turn $WSM into the next meme coin sensation – capable of replicating the returns of $PEPE.
This is likely your last week to purchase $WSM at presale prices or face higher prices once the token launches on exchanges.
What Other Tokens Are Worth Watching?
It’s not just Wall Street Memes making waves during the latest Bitcoin price decline.
A handful of lesser-known meme coins are gaining traction as investors believe they’re ideal locations to park cash for quick returns as the overall market sinks.
In particular, one recently launched project is already attracting a lot of investment after raising $120,000 just 24 hours after starting.
Let us introduce you to Sonik Coin ($SONIK).
Sonik Coin Raises $120,000 in 24 Hours As Investors Attracted to Stake-2-Speed Income.
Sonik Coin ($SONIK) is the latest meme coin gaining traction in the meme coin space as investors are intrigued by its unique Stake-2-Speed earning mechanism.
Described as the moronic recreation of SEGA’s most beloved character – Sonic the Hedgehog – Sonik is on a mission to become the fastest-growing meme coin in the second half of 2023.
Instead of collecting rings, Sonik collects $SONIK tokens to fuel his capitalistic ego. He wants to use his deceptive speed to pump his token to make it the fastest-ever meme coin to go from $0 to $100 million in market cap.
To do this, Sonik Coin is implementing an intuitive Stake-2-Speed mechanism, which rewards presale buyers that lock their tokens into a staking contract for at least seven days.
Buyers can purchase $SONIK throughout the presale and send them to the staking contract – even before the presale has finished.
Currently, around 4.5 million $SONIK tokens have been staked – providing an APY of over 500%;
The staking mechanism is why analysts like Jacob Bury believe $SONIK can provide a speedy 10x potential return, as most of the tokens are likely to be locked in the staking contract on launch – causing a supply shortage on the open market;
The tokenomics behind the project pay homage to Sonik’s ability to run at the speed of light, which is 299,792,458,000 m/s. Therefore, there is a 299,792,458,000 $SONIK supply.
Half of the entire supply is sold in the presale at a price of $0.000014. Furthermore, the presale and launch prices will be the same to ensure a fair and transparent launch for all investors.
The presale aims for a small and modest market cap of only $2.1 million – providing significant room for instant growth.
For example, $SONIK will only need to reach a $21 million market cap to provide 10x returns, which is achievable.
Of the remaining $SONIK supply, 40% is locked to provide staking rewards for four years, with the final 10% reserved to add liquidity to exchanges for a smooth trading environment.
Buyers looking to purchase $SONIK at presale prices can visit the website and convert ETH or USDT.
With such a small hard cap target, the $SONIK presale isn’t expected to last more than a couple of weeks before it launches and starts trending on popular platforms like DexTools.
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