Bitcoin (BTC), Ethereum (ETH) Back Down After Wild Weekend

It was another wild weekend in the crypto world, with Elon Musk as the center of attention. Musk offered a one word tweet of ‘indeed,’ in response to an accusation that he and Tesla may dump their BTC holdings; at least partially driven by the way the crypto world has reacted to last week’s news that the carmaker will stop accepting BTC as payment.

He later clarified that Tesla has not yet sold any of their Bitcoin holdings, but the cryptocurrency hasn’t yet recovered and prices pushed back to around three-month-lows. The support of note appears to be around 42,500, which is very near the 61.8% Fibonacci retracement of the January-April bullish move.


Bitcoin four hour price chart

Chart prepared by James StanleyBitcoin on Tradingview


Bitcoin wasn’t the only crypto currency on its back foot this weekend, as Ethereum also continued to pull back after a really strong start to the month of May. Ethereum does offer some alternative benefits to Bitcoin, namely in the anticipated move towards Ethereum 2.0 which is advertised as being more energy efficient.

In the effort of relative comparisons, a Fibonacci retracement has been applied to the January-May major move of Ethereum below. And while Bitcoin wrestles with the 61.8% retracement, Ethereum has put in a clean test and, so far, a bounce from the 38.2% retracement.


Ethereum price chart

Chart prepared by James StanleyEthereum on Tradingview


One crypto currency that held up fairly well this weekend was Dogecoin, which was originally created as a joke, and this weekend, we heard from the original duo that created the meme-coin. Jackson Palmer tweeted-and-deleted a disparaging remark towards Musk, calling him a ‘self-absorbed grifter.’

Musk continued to opine optimistically about Dogecoin, after last weekend’s SNL episode saw him say (albeit in a skit) that ‘it’s a hustle.’

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