Elon Musk’s love-hate relationship with Bitcoin was back in the spotlight on Sunday, with a bullish Tweet sparking the crypto market.
Musk stated that Telsa ‘sold about 10% of bitcoin to test market, and will ‘resume allowing crypto transactions’ when 50% of miners are green.’ Of course, only weeks ago, Bitcoin tanked when he started calling out Bitcoin for its energy usage. There was also widespread speculation that Musk would ultimately dump his entire holding of Bitcoin as a result.
For the time being, it appears that Musk is bullish again and the entire sector is heavily in the green as a result.
The other clear issue with Musk Tweeting is the fact that one person can continue to dictate a trillion-dollar sector of the market. With a single Tweet, Musk can move markets in huge ways. Surely this is something that needs to be considered very closely given the bulls continue to believe that BTC is truly a decentralised store of value. Which on the surface, it certainly doesn’t appear to be the case.
Technical Levels
Prior to Musk Tweeting, the Bitcoin chart was looking very weak to say the least. Price has been in a descending triangle pattern and a break would have seen a sharp drop. However, the opposite has now played out with a break out of the downtrend and we can see that price is back looking to test that important $40,000 level.
As I’ve said numerous times, we have a lot of resistance at current levels and it’s going to take huge buying to get price to jump above and hold that resistance level.
Price is already higher in Asian trade, however, we will be watching to see if it can ultimately test and hold that level.
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