Bitcoin Chops, But Could Be Prepping For A Move

Bitcoin Chops, But Could Be Prepping For A Move

Bitcoin (CRYPTO: BTC) fell off a cliff on March 12 after Tesla Inc (Nasdaq: TSLA) CEO Elon Musk announced on Twitter the electric vehicle and technology company would no longer accept the cryptocurrency as payment.

On Thursday, during an interview with Cryptopotato, a prominent investor and "Shark Tank" co-host Kevin O'Leary suggested Tesla’s shareholders, who are connected to sustainability committees, likely pressured Musk to make the decision.

The Musk Effect On BTC Price: Musk cited environmental concerns for his reasoning but, regardless of why Musk decided to backtrack on accepting the cryptocurrency at Tesla, it enraged Bitcoin and alt-coin enthusiasts.

Similar to the outcry when Musk tanked Tesla 8% on May 5, 2020, when he went on Twitter to announce “Tesla stock price is too high IMO," Musk’s Bitcoin announcement left some feeling Musk has too much sway, through his Twitter stage, over the prices of various coins.

In the eight days following Tesla’s May 12 policy change, Bitcoin plummeted just over 47% before finding a bottom at $30.06. It has since chopped around between that level and an upper resistance level at the $42.297 mark.

The Bitcoin Chart: Within the chop, Bitcoin has settled into a descending channel on the daily chart, putting in fairly consistent lower highs and higher lows.

A descending channel is a bullish pattern, however, and on Thursday Bitcoin attempted to break bullishly out of it but was knocked back down.

The more times a stock, or a crypto, bangs its head against a resistance level, the more likely it is to bust through it. Bitcoin has been trading above the median line of the channel more often than not.

Bitcoin is pinned between the eight-day exponential moving average (EMA) and the 21-day EMA, with the eight-day EMA trending below the 21-day EMA, which is consistent with choppy price action.

1 2
View single page >> |

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.