Bitcoin's New Support Line Is Frighteningly Low And Musk Puts Twitter Bid 'On Hold'

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Bitcoin closed off a week from hell with a price around $29k. Traders are now seeking where support levels are sustainable so that a new leg up can be tried in the near future. According to Sam Rule en Dylan Leclair, the new floor should be found around $24k.

They stated:

The key on-chain price areas to watch are still those that make up the cost basis. Currently the market’s realized price is around $24,000 while long-term holders realized price is around $17,000. As short-term holders realize losses, short-term holders realized price has dropped to around $48,000. If we’re to get the long-term holder market capitulation we’ve seen in the past, there’s potentially more downside to come.

40% or 7.6M of all 19M BTC is in loss.
60% or 11.4M is in profit.

Average price of BTC in loss is ~45K.
Average price of BTC in profit is ~9K.

Two different groups, two different perspectives. pic.twitter.com/ynCzzWaGYK

— PlanB (@100trillionUSD) May 14, 2022

Musk pondering on Twitter buy

Elon Musk claims to have had second thoughts regarding his planned $44 billion purchase of Twitter. Speaking via a (how else of course) tweet on Friday, he stated:

Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.

This now means that the deal, which could have major implications for the world of crypto as Musk is a strong believer in Bitcoin and Dogecoin, that the deal was temporarily on hold, pending an inquiry into the number of “spam/fake,” accounts that exist on the platform. He later clarified he was still serious about the acquisition.

Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn

— Elon Musk (@elonmusk) May 13, 2022

Critics of the Tesla CEO claim that Musk has taken a look at the markets and feels that given the descending stock values of the past two weeks, he should be allowed to make a lower bid. If Musk decides to walk away altogether, he would lose $1 billion.

JUST IN: Donald Trump says he believes Elon Musk will not buy Twitter “at such a ridiculous price.”

— CryptoWhale (@CryptoWhale) May 13, 2022

Of course, as the Washington Post remarked over the weekend:

Musk is walking a fine legal line when he moves stock prices potentially to his advantage with his tweets.