For trading experts, technical analysis is a vitally important tool when making any decision to buy or sell a particular stock, currency, or cryptocurrency, moreover, in addition to technical analysis they also tend to consider fundamental variables that intervene or modify the price action.
In any financial negotiation, fundamental analysis is a type of analysis that establishes operative orientations, with the objective of establishing the probable behavior of the price of a given stock, currency or cryptocurrency by monitoring external variables that affect its value.
I wanted to mention in this publication the impact that fundamental analysis has on the price of cryptocurrencies, a little to establish a relationship with the announcement recently made by Elon Musk on the use of cryptocurrencies with the subsequent collapse of BTC prices below 49,000 dollars and that pushed down the entire crypto market.
Fig. 2 Bitcoin in the last week experienced a price decline of nearly 14%. Image captured from: Coingecko.com
For a bit of context, it is worth mentioning that the tycoon and Tesla CEO Elon Musk on his Twitter account, tweeted the following "We are concerned about the rapid increase in the use of fossil energy for Bitcoin mining and transactions, especially coal", and then the crypto market suffered a considerable fall of around 10%.
Another of Musk's remarks was to indicate that "Cryptocurrencies are a good idea... but it can't be at the expense of a great cost to the environment", both statements are extremely captious and reflect a clear intention to affect the cryptocurrency market.
Now, these statements may be nothing more than a well thought out strategy to destabilize the price of Bitcoin, and the entire crypto market in order to seek affordable prices for their investment interests.
OBSERVATION
✔ The cover image was taken from the Twitter account of: Elon Musk @elonmusk
I agree with you my friend, the reason why Elon is splitting from BTC was known to everyone, even Elon himself, it seems that this is all about taking advantage of his influence to manipulate the market and profit from it.