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Melvin Capital Takes Huge Loss on GameStop Position

Hedge Fund Melvin Capital has finally exited its GameStop short position, taking heavy losses. But it hasn’t gone bankrupt.

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Melvin Capital Management, a hedge fund that shorted GameStop stock, is now out of the stock after taking a reported “huge loss.” 

“I’ve just got off the telephone with who runs that firm, they have taken a rather huge loss, I do not have the full number on what that loss looks like,” said Andrew Sorkin of Squawk CNBC

Citadel and Point 72 have combined to infuse approximately $3 billion into Melvin Capital Management in order to “shore up its finances.”

However, speculation that the firm would file for bankruptcy is false, also according to Sorkin. 

The loss follows an army of Redditors who pushed GameStop’s stocks price up to highs of over 200% in an apparent snub fuelled by Wall Street resentment. 

“To some degree, they might be able to argue now that they succeeded, if this was really about vanquishing Wall Street, or vanquishing a hedge fund manager,” Sorkin said, adding, “They may not have put them out of business, but boy did they come close.”

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TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K

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Bitcoin price failed to stay above $50,000 and $49,000 against the US Dollar. BTC is now below the 100 hourly SMA and it is likely to continue lower towards $45,000

  • Bitcoin started a fresh decline below the $50,000 and $49,000 support levels.
  • The price is now trading well below $50,000 and the 100 hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline towards $45,000 as long as it is below $50,000.

Bitcoin Price Turns Red

After forming a short-term top near the $52,600 level, bitcoin started a fresh decline. BTC traded below the $51,200 and $50,000 support levels to move back into a negative zone.

There was also a break below a major bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair. The pair even broke the $48,000 support level. There was a clear break below the 50% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

It is now trading well below $50,000 and the 100 hourly simple moving average. It seems like the bulls are trying to protect the 61.8% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

Bitcoin Price

Source: BTCUSD on TradingView.com

If they fail and the price trades below $46,500, there are chances of more losses. The next key support is near the $45,000 level, below which the bears might aim a test of the $43,000 support zone.

Fresh Increase in BTC?

If bitcoin stays above $46,500, it could correct higher. An initial resistance on the upside is near the $48,000 level. The first major resistance is near the $49,000 level and the 100 hourly simple moving average.

There is also a connecting bearish trend line forming with resistance near $49,000 on the same chart. To move into a positive zone, the price must clear the trend line resistance and then gain pace above the $50,000 barrier.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $46,500, followed by $45,000.

Major Resistance Levels – $48,000, $49,000 and $50,000.

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Source: https://www.newsbtc.com/analysis/btc/bitcoin-btc-could-retest-45k/

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Bitcoin Price Prediction: BTC drops below $50,000 as Wall Street bleeds

TL;DR Breakdown Bitcoin price sheds over 7 percent from yesterday’s $52,500 high BTC/USD pair is currently trading at $46,613 Bitcoin follows in the direction of Wall Street Bitcoin Price Prediction: General price overview Bitcoin price established a solid support near the $43,000 and $44,000 area at the beginning of the week after dropping sharply from […]

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TL;DR Breakdown

  • Bitcoin price sheds over 7 percent from yesterday’s $52,500 high
  • BTC/USD pair is currently trading at $46,613
  • Bitcoin follows in the direction of Wall Street

Bitcoin Price Prediction: General price overview

Bitcoin price established a solid support near the $43,000 and $44,000 area at the beginning of the week after dropping sharply from its new all-time high of $58,000 last week. The world’s largest cryptocurrency had infiltrated the bottom boundary of a rising price channel during the decline, displaying signs of weakness as February’s bullish momentum came to a halt. 

Earlier this week, after a consolidation phase within a falling wedge pattern, Bitcoin price successfully penetrated the upper boundary, sparking a frantic rally that reached $52,500 as of yesterday. This morning, the world’s leading cryptocurrency lost its grip of the $50,000 price level amid a wider liquidation in both equities and the cryptocurrency market. 

The flagship cryptocurrency has shed over 7 percent of its price over the last 24 hours and at press time, it is trading at a market price of $46,613. Regardless of the dip, data by Glassnodes indicate that long term Bitcoin holders were stockpiling despite the sell-off. So far, the daily price range is in between $46,300.00 — $48,376.20. 

Bitcoin Price Prediction: BTC/USD 1-day chart

Bitcoin Price Prediction: BTC drops below $50,000 as Wall Street bleeds 1
BTC/USD Daily chart: Trading View

After rallying towards $52,500 yesterday, Bitcoin price retraced back to below $50,000, moving below the bottom boundary of an ascending parallel channel. Besides, the $52,500 price level represents the Golden Fibb retracement level of the decline from $58,000 all-time high price and last week’s low of $43,000. As such, Bitcoin price appears to be trading in a bearish market for the short term. 

Moreover, Bitcoin’s correlation to the S&P 500 reached a 5-month high this month. Bitcoin has been correlated to traditional financial markets over the last several months and this was evident a few weeks ago when Bitcoin price trailed stocks at close range. The last time Bitcoin and stocks followed each other this closely was back in November last year. 

Today, U.S. Federal Reserve Chairman Jerome Powell delivered a disheartening speech that resulted in both S&P 500 and NASDAQ to shed about 3 percent of their value. The Fed chief noted that he “would be concerned” by constraining the financial terms as increasing yields on government bonds exert a great deal of pressure on the cost of borrowing. Following in the footsteps of S&P 500 and NASDAQ, Bitcoin price declined sharply and it is still dropping at the time of writing. 

Bitcoin Price Prediction: Conclusion

The comments by Powell comes amid a raft of mixed predictions by popular analysts on the future of Bitcoin. Bloomberg’s Mike McGlone used historical data to suggest that Bitcoin price is journeying towards $100,000 on March 4. McGlone points out the rising discount for shares in Grayscale’s Bitcoin Trust. The discount applies to when the price of Grayscale shares is trading at a lower price than the underlying crypto asset, and it is currently at the level it was during the March 2020 crypto market crash. 

Crypto Twitter analyst, MasterChangz, tweeted to his followers that the Bitcoin price will hit $200K before we get in June 2021. According to him, the next rally will be towards $77,000 in two weeks time. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions. Checkout PrimeXBT
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Source: https://www.cryptopolitan.com/bitcoin-price-prediction-btc-drops-below-50000/

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Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge alongside MSTR’s

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A former equities CIO of Goldman Sachs drew an strong response on Twitter after suggesting Tesla should sell its Bitcoin and buy back company shares.

The price of TSLA shares have fallen 28% from $863.42 to $621.44, since news broke on Feb. 8 that Tesla had made a $1.5 billion BTC acquisition.

MicroStrategy’s shares have fared even worse in the short term. The company, which is headed by Bitcoin bull Michael Saylor and just completed its latest acquisition of $15 million in BTC on Mar. 3, is now down 50% from its all-time high of $1,315 from Feb. 9.

Tesla’s share market woes are likely due to a number of factors. In early February, it was reported that Tesla had been reprimanded by the Chinese government over quality control issues after receiving consumer complaints. The broader stock market has also experienced volatility, with the S&P 500 down 4.1% in the last 30 days. 

But the tweet from longtime Tesla analyst Gary Black, who has several decades of financial management experience, sparked a debate on whether Tesla’s purchase of $1.5 billion in Bitcoin last month had benefited investors.

“I don’t want them buying back stock,” said Twitter user Techgnostik. “I want them investing in growth, and making another billion on their BTC position.”

Black countered by suggesting TSLA would also draw inclusion by more fund managers with a share buyback program, considering it of greater value to the investor than buying BTC “with excess cash.”

Some users on Twitter agreed that a stock buyback seemed to be a more appropriate use of funds, while others felt too much attention was being paid to what Tesla did with 8% of their cash reserves.

It’s not easy to ascertain the impact buying Bitcoin has had on a company’s bottom line. While MicroStrategy’s share price has halved in a month, shares of MSTR are still up 340%, (from $146.63 to $645.66), since the company announced its first purchase of 21,454 BTC on Aug. 11, 2020. The price of BTC is currently up 310% from the same date.

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Source: https://cointelegraph.com/news/analyst-tells-tesla-to-dump-bitcoin-for-buybacks-as-shares-plunge-alongside-mstr-s

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