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Tesla’s Stock Is on the Brink of Disaster as Growth Gets Shorted Out

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By CCN: Tesla investors are having a forgettable year as the stock has made them poorer by more than 30%. The Elon Musk-led company’s stock fell to two-year lows earlier this week.

Tesla stock price chart

Tesla’s stock recently dropped to two-year lows, but Evercore expects more downside | Source: Yahoo! Finance

But independent investment banking advisory firm Evercore ISI believes that the bloodbath isn’t done yet and has lowered its stock price target to $200 from $240. This represents a 13% drop from Tesla’s current stock price.

The Wheels Are Coming Off

Tesla’s stock has been hammered this year as investors and analysts have recognized that the electric vehicle maker faces an uphill task to grow sales thanks to a variety of challenges. According to Evercore ISI cited in CNBC:

“Our rev estimates decline -3%, -1%, and -6% in ’19, ’20, ’21 respectively, due to concerns around production, demand and macroeconomic conditions. With an enterprise value still of $53bn, Tesla still trades at a huge valuation premium to any automotive peers. This compares to other premium OEMs such as VW’s $36bn, BMW’s $15bn and DAI’s $27bn.”

Evercore’s thesis is that Tesla needs to deliver impressive growth in order to justify its lofty valuation. That can only happen if the company manages to execute its operating plan well, but that hasn’t been the case this year.

Tesla reported its biggest sales drop ever last month. Not surprisingly, the stock cratered. Its Q1 numbers were terrible amid logistics problems that hampered deliveries. Of course, Tesla is still promising that it will deliver 400,000 cars this year after moving just 63,000 vehicles in Q1.

But Musk has failed to deliver on his promises in the past, so don’t be surprised to see him fluffing his lines once again.

Tesla’s Stock Is in for a Rocky Road

Tesla’s stock can only be propped up if the company can boost sales, but there are a ton of reasons why this is easier said than done.

First, the company no longer enjoys the federal tax credit tailwind, making its cars more expensive to purchase.

Second, Tesla has added to the potential buyer’s woes by raising the price of its cars. And finally, there’s a possibility that sales growth will be hurt by the growing population of used Tesla cars.

The combination of all these factors will dent not only Tesla’s sales growth but also its bottom line.

Tesla stock is already facing ominous signs as sales of the affordable Model 3 were down a whopping 74% month-over-month in January. This contributed to the big miss in Q1 deliveries, as analysts were originally expecting the company to deliver 91,000 vehicles.

If Elon Musk fails to ramp up delivery numbers in the coming quarters, Evercore’s $200 Tesla stock price prediction could come true and burn a deeper hole in investors’ pockets.

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First Since 2017: Bitcoin Price Logs Double-Digit Gains for Third Week

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  • Bitcoin has recorded double-digit gains for three consecutive weeks, a feat last seen during the height of the bull market in 2017.
  • BTC’s quick recovery from Friday’s low of $6,178 indicates “buy the dip” mentality is quite strong. Further, the daily and weekly charts are biased bullish. Prices, therefore, could rise to $8,500 (July 2018) this week.
  • Before such a rise, however, we may see a correction to $7,500–$7,200, according to the hourly chart.
  • The short-term outlook would turn bearish only if prices find acceptance below the 30-day moving average, currently at $6,239.

Bitcoin (BTC) is looking strong, having registered double digit gains for three consecutive weeks.

The leading cryptocurrency by market value closed last week with 17.5 percent gains, having rallied 22.16 percent and 10.62 percent in the preceding two weeks, respectively, according to Bitstamp data.

The last time BTC witnessed a similar bullish run was in the final quarter of 2017, when the cryptocurrency had logged in double digit gains for five weeks straight to hit an all-time high of around $20,000 on Dec. 17.

The latest weekly winning streak could be extended further, as BTC’s quick recovery from Friday’s lows below $6,100 to a high of $8,299 on Sunday indicates a strong “buy the dip” mentality.

As of writing, BTC is changing hands at $7,903, representing a 1.36 percent drop on the day.

Other top cryptocurrencies like ether (ETH), litecoin (LTC), binance coin (BNB) and XRP are also reporting moderate losses, according to CoinMarketCap.

Weekly Chart

As can be seen, BTC has logged its first three week run of double digit gains since December 2017.

Notably, prices bounced up sharply from the 5-week moving average (MA) last week and closed on a positive note, reinforcing the bullish view put forward by that ascending average.

There have also been two bullish crossovers in the last week: one of the 5- and 100-week MAs, and another of the 10- and 50-week MAs, suggesting the path of least resistance is to the higher side.

What’s more, BTC closed well above September 2018 high of $7,411 last week. The cryptocurrency, therefore, appears on track to test the next resistance at $8,500 (July 2018 high).

Daily chart

Bitcoin closed with nearly 13 percent gains on Sunday, marking a strong follow-through to the dip demand highlighted by Friday’s long-tailed daily candle.

The short-term outlook, therefore, remains bullish with scope for a rally to $8,500, as suggested by the weekly chart.

Confirming the bullish case is the positive reading on the Chaikin money flow (CMF) index, indicating increasing buying pressure. Further, the 10-day moving average (MA) is also trending north in favor of the bulls.

The outlook as per the daily chart would turn bearish only if and when the price finds acceptance below the 30-day MA, currently at $6,239. That average resistance was breached with a high-volume rally upside move on Feb. 8 and has reversed pullbacks ever since.

While the weekly and daily charts are biased bullish, the short duration view below indicates a pullback to $7,500 may be in order before a rally to $8,500.

Hourly chart

On the hourly chart, BTC is currently trading above the head-and-shoulders neckline of $7,848, having dived out of a rising wedge – a bearish reversal pattern – in the Asian trading hours.

A head-and-shoulders breakdown would be confirmed if prices drop below $7,848, opening doors for a deeper correction to the $7,500–$7,200 support zone.

That said, with the longer duration charts biased bullish, any dips to $7,500 or below will likely be short-lived.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; technical charts by Trading View

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TRON Price Prediction Today: Daily (TRX) Value Forecast – May 20

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Tron-Surpasses-1-Billion-In-Trading-Volume-Reaching-New-Highs-In-Over-12-Months

Tron-Surpasses-1-Billion-In-Trading-Volume-Reaching-New-Highs-In-Over-12-Months

  • The short and medium-term outlook is in a bearish trend.
  • Traders may consider selling at key areas.

TRX/USD Medium-term Trend: Bearish

• Supply zones: $0.04000, $0.05000, $0.06000
• Demand zones: $0.01000, $0.00900, $0.00800

TRON is in a bearish trend in its medium-term outlook. After bullish exhaustion at $0.03319 in the supply area, the bears took control of the market. The cryptocurrency is in an ascending channel a correction pattern for downward price continuation.

The bulls manage a push to $0.02880 as the high of yesterday market before exhaustion and the bears stage a return.

The bearish 4-hour opening candle at $0.02830 sustained the bearish momentum with the cryptocurrency down at $0.02703 in the demand area.

The stochastic oscillator signal points down at 47% while price is between the two EMAs. These suggest downward momentum with more candle opened and closed below the two EMAs due to increased pressure by the bears.

$0.02655 in the lower line of the channel and a subsequent break may occur in the medium-term.

TRX/USD Short-term Trend: Bearish

The cryptocurrency is in a bearish trend in its short-term outlook. The double-top10 formation at $0.02870 in the supply area favour the bears in the short-term. Confirmation to the downward movement occurred at the bread of the two EMAs by the large bearish candle at$0.02830.

TRXUSD is currently down at $0.02697 in the demand area with $0.02550 in the demand area is the initial bears’ target. This was confirmed by the signal of the stochastic pointing down at % in the oversold region coupled with price below the two EMAs.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

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Game Changer for Bitcoin? VanEck ETF Decision Tomorrow –  All You Need to Know

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One of the events the entire cryptocurrency community has its sights turned to is the VanEck/SolidX Bitcoin ETF proposal. It was published in the Federal Register back on February 20th, giving the SEC a legal timeframe of 90 days to make a further decision. This means that the Commission must come up with a decision tomorrow, May 21st.

May 21st – An Important Date for Bitcoin

The saga around VanEck/SolidX Bitcoin ETF proposal has been going on for quite a while now. Last year, their application was withdrawn after being delayed on multiple occasions by the US Securities and Exchange Commission (SEC). However, shortly after that, the application was submitted again, reigniting hope among those who believe that a Bitcoin ETF would catalyze a further increase in the price of the cryptocurrency, as well as further adoption.

The new application was filed with the Federal Register on February 20th, giving the SEC a binding term of 90 days to come up with a decision to approve, deny, or delay it. Interestingly enough, another Bitcoin ETF application was also filed with the Register on February 15th – that of Bitwise. The SEC delayed its decision on the latter, while even deciding to use the full 90 days term to make up its mind on the application of VanEck and SolidX. This is why May 21st is an important date to expect.

According to famous legal expert among the cryptocurrency community, Jake Chervinsky, however, the chances of a delay or denial are much higher than the chances of approval.

He bases his merit on the fact that the SEC is unlikely to approve the first-ever Bitcoin ETF without taking the full 240 days period that it legally can. Moreover, he also finds it rather unusual that the Commission didn’t delay the VanEck Bitcoin ETF together with that of Bitwise.

The lawyer also cited some of the reasons for the delay of the application of Bitwise, which include:

  • The nature of the market for Bitcoin
  • The efficiency of that market
  • The susceptibility of that market to manipulation
  • How the market is similar to markets for other commodities
  • Reports that a large percentage of reported volume is fake

Chervinsky pointed out that if VanEck has any chance of approval, then the SEC “would need to delay & aks all these same questions to them as well.”

What Does This Mean For Bitcoin?

While it’s anyone’s guess how a potential approval of a Bitcoin ETF would impact Bitcoin’s price and whether it would surge, the majority of the cryptocurrency community is undoubtedly sure of it.

According to Josh Roger, a well-known cryptocurrency trader and investor, the different scenarios will have different impacts on the price.

The upcoming VanEck ETF decision could certainly have a serious impact on BTC price.

Denial = Pull back the current price regardless of how good it looked this weekend.

Approval = push the price to new yearly high and create mass FOMO buying.

Delay = Expected & likely little change.

Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.


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Game Changer for Bitcoin? VanEck ETF Decision Tomorrow –  All You Need to Know

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One of the events the entire cryptocurrency community has its sights turned to is the VanEck/SolidX Bitcoin ETF proposal. It was published in the Federal Register back on February 20th, giving the SEC a legal timeframe of 90 days to make a further decision. This means that the Commission must come up with a decision tomorrow, May 21st.

May 21st – An Important Date for Bitcoin

The saga around VanEck/SolidX Bitcoin ETF proposal has been going on for quite a while now. Last year, their application was withdrawn after being delayed on multiple occasions by the US Securities and Exchange Commission (SEC). However, shortly after that, the application was submitted again, reigniting hope among those who believe that a Bitcoin ETF would catalyze a further increase in the price of the cryptocurrency, as well as further adoption.

The new application was filed with the Federal Register on February 20th, giving the SEC a binding term of 90 days to come up with a decision to approve, deny, or delay it. Interestingly enough, another Bitcoin ETF application was also filed with the Register on February 15th – that of Bitwise. The SEC delayed its decision on the latter, while even deciding to use the full 90 days term to make up its mind on the application of VanEck and SolidX. This is why May 21st is an important date to expect.

According to famous legal expert among the cryptocurrency community, Jake Chervinsky, however, the chances of a delay or denial are much higher than the chances of approval.

He bases his merit on the fact that the SEC is unlikely to approve the first-ever Bitcoin ETF without taking the full 240 days period that it legally can. Moreover, he also finds it rather unusual that the Commission didn’t delay the VanEck Bitcoin ETF together with that of Bitwise.

The lawyer also cited some of the reasons for the delay of the application of Bitwise, which include:

  • The nature of the market for Bitcoin
  • The efficiency of that market
  • The susceptibility of that market to manipulation
  • How the market is similar to markets for other commodities
  • Reports that a large percentage of reported volume is fake

Chervinsky pointed out that if VanEck has any chance of approval, then the SEC “would need to delay & aks all these same questions to them as well.”

What Does This Mean For Bitcoin?

While it’s anyone’s guess how a potential approval of a Bitcoin ETF would impact Bitcoin’s price and whether it would surge, the majority of the cryptocurrency community is undoubtedly sure of it.

According to Josh Roger, a well-known cryptocurrency trader and investor, the different scenarios will have different impacts on the price.

The upcoming VanEck ETF decision could certainly have a serious impact on BTC price.

Denial = Pull back the current price regardless of how good it looked this weekend.

Approval = push the price to new yearly high and create mass FOMO buying.

Delay = Expected & likely little change.

Be the first to know about our price analysis, crypto news and trading tips: Follow us on Telegram or subscribe to our weekly newsletter.


CryptoPotato Video Channel



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PSA: Bitconnect ‘2.0’ Triggers Countdown to Resurrect Greatest Crypto Ponzi Ever

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By CCN: In 2016 a cryptocurrency project named BitConnect came along offering 1% daily compounded interest for those who purchased and staked its token.

When the BitConnect (BCC) bubble inevitably burst, the owners, as expected, made off everyone’s money. The BCC token price sunk by 99.9%, and a previously $2.5 billion valued project became worthless.

Now, the greatest scam ever sold is back. Enter BitConnect 2.0.

Hey, Hey, Hey: BitConnect 2.0 Arrives for a Second Bite at the Cherry

A website and Twitter profile advertising the arrival of BitConnect 2.0 appeared in the last few days. The website shows a countdown to the rebirth of one of the worst cryptocurrency scams of all time.

Bitconnect countdown

The Twitter profile contains just two posts – one is a link to the new website; and the other is a Binance referral link with the directive ‘Buy Now’.

Of course, there are no BitConnect tokens (either 1.0 or 2.0) hosted on Binance. If we take a look at the domain registrar details for the new website – BitConnect.io – we see some strange peculiarities.

Despite the Twitter post promising a July 1st launch, the website’s domain name is set to expire two weeks before that date. The domain, which differs slightly from the original BitConnect.co website, was registered in 2017.

bitconnect domain

Scamception: A Scam Inside a Scam

All of this adds up to what looks like a scam inside a scam. Assuming the site domain isn’t renewed before the expiration on June 19th, then perhaps what we have here isn’t BitConnect 2.0 at all.

Rather, it appears someone with an old domain name is attempting to squeeze as much money out of their Binance referral link as possible before the site expires. The Twitter profile shows almost 1,000 followers already, despite the first post not appearing until one day ago. However, the new website is also registered in the same geographic location as the original – Panama.

One person who was able to see the funny side of the BitConnect revival was former BCC front-man, Carlos Matos. Famous for his exuberant and dramatic on-stage sale pitch, Matos continues to post memes about the BitConnect saga. Recently he revived his infamous ‘Hey, Hey, Hey…’ slogan to comment on BitConnect 2.0; which he apparently has no part in.

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Matos even posted this meme expressing a skeptical take on the project’s revival.

bitconnect grand theft auto meme

Too Late for Skepticism

Ultimately, the same skepticism would have been useful several years ago, before gullible investors were taken for all they had. From the ICO price of $0.17, the value of BCC tokens shot up to $509.99 in one year – marking ridiculous gains of 299,894%.

bitconnect charts

Of course, those gains were never cashed out. When the exit scam hit in January 2018, the value of BCC dropped like a stone. Data for the token price continued to be tracked up until August 2018, when it held a value of just $0.263786, before being removed from all exchanges.

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