Bitcoin, Ethereum, Dogecoin - Sharp Bounceback After Another Elon Musk Tweet

Bitcoin, Currency, Technology, Money, Cryptocurrency

BITCOIN (BTC/USD), ETHEREUM (ETH/USD), AND ALT-COIN ANALYSIS AND CHARTS:

  • Bitcoin, Dogecoin weekly losses being pared back, Ethereum ahead of the game.
  • The power of Elon Musk’s tweets may spell problems.

The cryptocurrency has had a turbulent few days with a tweet by Elon Musk sparking a heavy sell-off on Thursday before another tweet less than 24 hours later sent prices charging higher again. Market leader Bitcoin continues to underperform however and is currently -10% over the last 7 days, while Ethereum is +15% on a weekly basis. Across the spectrum, there are weekly winners and losers with Dogecoin down 11%, Cardano up 9%, Ripple down 16%, and Telcoin up 22%. A look at the top 100 coins by market cap shows far more losers than winners over the week, but these losses are currently being eroded away.

This week’s market sell-off was sparked by Tesla boss Elon Musk halting car payments in Bitcoin, bringing down another Musk favorite Dogecoin at the same time.

Bitcoin (BTC) and Ethereum (ETH) Crushed, Dogecoin (DOGE) Slumps 20% as Tesla Halts Bitcoin Payments

Late Thursday, Elon Musk then tweeted that he would work with Doge developers to ‘improve system transaction efficiency’ a bullish signal for the 4th largest coin by market cap.

Dogecoin (DOGE) Rallies Sharply on Elon Musk Co-Operation, Coinbase Adoption News

Elon Musk’s tweets are closely followed by the cryptocurrency and the volatility that they can cause is well known, especially for Musk’s favorites, Bitcoin and Dogecoin. The week’s sharp moves however show that the power of his tweets can move the market as a whole, a very unwelcome situation, even for the avid volatility chaser. Either that or the market as a whole is becoming very nervous about current cryptocurrency levels. Volatility is good, excessive short-term volatility is not.

The daily BTC chart remains neutral with yesterday’s sell-off candle in control of current price action. Bitcoin’s market dominance is now below 41% and continues to lag Ethereum. To regain an upward bias, BTC needs to open above yesterday’s high print at $52,900 and break above both the 20- and 50-day simple moving averages at $55,000 and $$56,100 respectively. The market is oversold, using the CCI indicator, suggesting that Thursday’s low at $46,070 is unlikely to be troubled.

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William K. 4 weeks ago Member's comment

How can a currency be useful when the price keeps dancing around like a demon possessed dervish? That makes very little sense.

And the share price jumping up and down based on Elon Musk tweets? That is just DUMB. The best would be if nobody would ever buy the shares perhaps this dream could be ended.