World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?

World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?
World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?

Bitcoin (BTC) has been correcting since the peak high at $42,000. However, this correction might have ended as a significant momentum shift occurred in recent days. 

The GameStop debacle raised many questions about big parties’ trustworthiness and exchanges, after which more and more people started to claim that decentralization is the future.

Among these people is Elon Musk who is worth nearly $183 billion, according to Forbes making him the world’s richest person. The Tesla CEO included #Bitcoin in his Twitter profile and also wrote “in retrospect, it was inevitable.” A very cryptic message to his 44 million followers, which some may interpret as Musk investing in Bitcoin.

In retrospect, it was inevitable

— Elon Musk (@elonmusk) January 29, 2021

However, this tweet and profile change from Elon Musk prompted a new rally on Jan. 29 with price surging from $32,500 to $38,000 in a matter of minutes. The primary questions now are: does this mean the bull market is continuing and will BTC see new all-time highs?

Bitcoin holds key $30,000 level

XBT/USD 2-hour chart. Source: TradingView

The 2-hour chart shows a clear bullish breakout after holding the significant support zone at $30,000.

The critical breaker for bullish continuation was to find support at $30,000, which happened in recent days. Since then, the next step for bullish continuation would be a breakout above the $34,000 resistance zone.

As the chart shows, and largely thanks to Elon Musk’s tweet, the breakout was confirmed, and Bitcoin started to accelerate heavily. The next level to break is $37,600-38,000 as that’s the next area of significant liquidity.

Currently, Bitcoin’s price is trying to crack that level of resistance at $38,000. If this area flips for support, a further bullish continuation toward the all-time highs will likely occur, and $50,000 comes into play. 

Total market cap makes a new all-time high

Total cryptocurrency market cap 1-week candle chart. Source: TradingView

The total cryptocurrency market capitalization has reached new all-time highs in the past 24 hours, accelerating to the $1.13 billion level.

However, the total market capitalization and the price of Bitcoin are still far away from the 21-Week MA. That 21-Week MA often sees a support test before continuing upward.

Therefore, the levels to watch for the total market cap are still the same as before. If the market can’t continue going up from here, $730 billion will be the focus as that would grant a perfect support/resistance flip from the previous all-time high.

BTC/USD 1-week chart. Source: TradingView

The weekly chart shows an apparent bullish cycle and a big gap between the 21-Week MA and the current price. These two often come back to each other to get the markets back to the “mean” of the price movement.

Thus, such a correction would bring the price of Bitcoin to the $25,000 region in the coming weeks. In the end, as long as Bitcoin remains above the 21-Week MA, the continuation of this bull market is very likely.

Critical levels to watch for Bitcoin

XBT/USD 3-hour chart. Source: TradingView

Currently, the price of Bitcoin is trying to break through the resistance at $38,000. If that breaks, a continuation toward a new all-time highs seems inevitable, as $40,500 is the only level to watch after $38,000.

In that perspective, even price targets of $45,000 and $50,000 are on the table. However, if Bitcoin’s price can’t break through the $38,000 area, a renewed retest of the $34,000 zone should be expected.

If that doesn’t hold for support, a sharp fall toward the lows may occur along with more range-bound price action. Nevertheless, this would not be unhealthy for the market from a wider perspective.

author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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CoinMarketCap Adds Wall Street Bets (WSB) Informational Ticker

CoinMarketCap Adds Wall Street Bets (WSB) Informational Ticker
CoinMarketCap Adds Wall Street Bets (WSB) Informational Ticker

To say that the last few days have been exciting would be a massive understatement in regard to the global financial markets.

A group of retail investors, united behind the same cause of rebelling against “smart money” on Wall Street, brought out plenty of things that are wrong with the status quo. Wall Street Bets, as their subreddit was originally called, has also caught the attention of the cryptocurrency community, with the leading monitoring resource, CoinMarketCap, dedicating an informational ticker.

Wall Street Bets: What Happened?

A little less than a week ago, someone took it to Reddit to reveal that some Wall Street hedge funds were overly exposed to their short positions on GameStop stocks.

GameStop is a company, the shares of which have been declining substantially ever since the COVID19 pandemic hit, leading to the restrictions on many physical locations that some countries keep up to date. Naturally, as it happened to many other industries, its business suffered, and its stock took a nosedive.

To no one’s surprise, this was picked up by Wall Street hedge funds, who started shorting the stock to the extent that they left themselves overly exposed to their positions. But why would they worry? The fundamentals behind the trade were clearly in place as GameStop didn’t really see any tangible perspective of recovering – on the opposite.

But there was one thing that hedge funds couldn’t have seen – something so far outside of fundamental or technical analysis that even the best algorithms couldn’t pick up – the power of retail investors clinging toward a single mission – to liquidate the ‘big boys.’

Word started catching fire as a certain subreddit called Wall Street Bets quickly gained millions of users, all united behind the same idea – skyrocket GameStop’s (GME) stock price to the thermosphere.

And skyrocket, they did. The price surged by over 600% in a matter of days as hedge funds saw themselves covering billions in losses. GME became a meme stock representing the innate desire of retail investors to crush Wall Street at least once.

And that’s just the tip of the iceberg.

Genie is Out of the Bottle

Hedge funds got the cash – a lot of it. It’s highly unlikely that the GME fiasco caused irreparable damage to any of them, and it’s highly likely that most banked massive profits.

How all of this happened is what’s worth thinking about. To prevent people from piling on GME stocks, major trading platforms such as Ameritrade, Robinhood, and even NASDAQ, halted trading. These are just a few – the list is not exclusive.

This raised concerns – why are these companies preventing people from buying more of the stock? The most obvious answer is, of course, to prevent large hedge funds, the so-called smart money, from getting wrecked any further. But where does this leave the little guy?

We don’t really see trading halts when retail investors have their positions liquidated. There are no emergency breakers when the John Does of the financial market watch their portfolios thin out.

It became clear that Wall Street plays by different rules. As a matter of fact, it became clear that Wall Street is not even playing the same game. And this caught the attention of the masses – have fun putting that genie back in the bottle.

CoinMarketCap Adds Informational WSB Ticker

Amid all this, the leading cryptocurrency market monitoring resource – CoinMarketCap – has added an informational ticker of Wall Street Bets (WSB) at the forefront of their list. Users can find everything they need of the GameStop short squeeze and the aftermath there.

It’s perhaps here where we should add that while all of this was happening on Wall Street, the cryptocurrency market was shook too. The self-proclaimed ‘Chairman’ of Wall Street Bets took it to Twitter to ask if Dogecoin (DOGE) has ever traded at $1. That’s all it took.

In less than 24 hours, the most popular meme coin and arguably Elon Musk’s favorite cryptocurrency gained almost 1100%. It surpassed long-term projects with tons of fundamentals behind them and left them in the dust, peaking at number 7 on CoinMarketCap’s top 10 list.

We reached to CMC about their most recent addition – the WSB ticker. Commenting on the matter was Aaron Khoo, Head of Listings.

“At the heart of this phenomenon lies the innate human desire to troll. Jackson Palmer, Dogecoin’s creater “never imagined that the tongue-in-cheek cryptocurrency [he] had just brought into the world would still be around in the year 2018, let alone hit a $2 billion market cap [in 2018].”

Touching on their decision to add the WSB ticker in particular, he said:

“Much like the GME’s Gamma squeeze, Dogecoin’s ascent epitomizes a psychological desire to take the mickey out of the man— a loose agglomeration of individuals ultimately wanted to make a statement that the ostensibly credentialed Wall Street hedge funds were in no better position to arrogate upon themselves the right to make pronouncements on what an asset’s fair valuation ought to be. 

Since this resonates with the raison d’etre of crypto, it is only fitting that we should get in on the action, even if it is just a token contribution..”

It’s interesting to see how things go forward. Will the public step back? Were these the three days of a miracle that will fade out in a couple of months? Or will it spearhead something much more lasting?

If one thing is clear, though, it’s that all of this has highlighted the merits behind decentralization to an extent that we hadn’t seen before.

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Bitcoin soars by $5K in minutes — BTC hits $38K after Elon Musk’s ‘Dogecoin treatment’

Bitcoin soars by $5K in minutes — BTC hits $38K after Elon Musk’s ‘Dogecoin treatment’
Bitcoin soars by $5K in minutes — BTC hits $38K after Elon Musk’s ‘Dogecoin treatment’

Bitcoin (BTC) surged by over $5,000 in minutes on Jan. 29 after the world’s richest man added its symbol to his Twitter page.

BTC/USD 1-hour candle chart. Source: Tradingview

BTC price hits $38K highs

Data from Cointelegraph Markets and Tradingview showed BTC/USD spiking to $38,000 as users began to notice that Elon Musk was now publicly advertising Bitcoin.

The move comes amid major anticipation from investors that BTC will be the next asset to receive a boost, either from a figure like Musk or from lay consumers affiliated with the now notorious Reddit group r/Wallstreetbets.

As Cointelegraph reported, Musk had previously singlehandedly pumped the price of several cryptoassets notably meme-based Dogecoin (DOGE), with just one or a handful of tweets.

DOGE, along with stocks GameSpot and AMC, meanwhile all surged thanks to Reddit this month, with the ensuing regulatory retaliation causing uproar and increasing cryptocurrency’s reputation as an independent investment.

“This should be your wake up call to get your #Bitcoin off exchanges,” popular Twitter account Documenting Bitcoin summarized as $GME trading was shut down.

Musk leaves Twitter still speculating

For Musk, who at one time had “former Dogecoin CEO” in his bio, no explanation of the move towards Bitcoin had been made public at the time of writing, with only a characteristically cryptic tweet coming afterward.

“In retrospect, it was inevitable,” he wrote.

Musk has a chequered history when it comes to Bitcoin, with previous tweets making it impossible to tell if he owned or even liked the largest cryptocurrency.

Twitter volume for “BTC” and “DOGE.” Source: TheTIE

On Friday, however, BTC/USD had yet to match $GME or others, reversing at $37,000 to trade slightly lower and still within an established corridor. As proponents noticed his update, messages of support came rolling in fast.

“Got em,” Robert Breedlove, author of “Thank God for Bitcoin,” responded.

Abra CEO Bill Barhydt added:

“Elon has discovered interplanetary money. Buckle up.”

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Crypto in the Philippines: Necessity is the mother of adoption

Crypto in the Philippines: Necessity is the mother of adoption
Crypto in the Philippines: Necessity is the mother of adoption

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Altcoins soar after 10% Bitcoin price breakout flips $33K back to support

Altcoins soar after 10% Bitcoin price breakout flips $33K back to support
Altcoins soar after 10% Bitcoin price breakout flips $33K back to support

Bitcoin (BTC) price appears to have flipped the $32,000 level back to support as the wider cryptocurrency market saw renewed optimism on Jan. 28. 

Data from Cointelegraph Markets and TradingView shows that BTC has steadily climbed higher in price from $31,000 to its current value of $33,400, an increase of 9.5%.

Daily cryptocurrency market performance. Source: Coin360

The most notable gainer of the day was Dogecoin (DOGE) which surged more than 200%.

The popular meme coin became the latest beneficiary of the 3 million member Reddit community behind the incredible GameStop (GME), BlackBerry (BBY) and AMC Theatres (AMC) pump that happened over the last few days. In the early morning hours of Jan. 28, a Twitter account named WSB Chairman tweeted:

A lot of you are talking about Dogecoin. What’s that? A meme crypto?

— WSB Chairman (@WSBChairman) January 28, 2021

Shortly afterwards, members in the Wall Street Bets telegram began discussing the possibility of pushing DOGE to $1.

According to data from TheTIE, the tweet volume for Dogecoin “surpassed Bitcoin over the last 24 hours,” making this the first time on record that “an altcoin has been tweeted about more than Bitcoin over a 24 hour period.”

Dogecoin price vs. tweet volume. Source: TheTIE

In a private conversation with Cointelegraph, Joshua Frank, founder of TheTIE, commented on just how “wild” the activity related to Dogecoin has been over the past 24-hours.

Frank said:

“Dogecoin tweet volume is up 1,665% today, its trading volume is up 1,546%, and its price is up 209%”

Wall Street continues to embrace cryptocurrencies

Coinbase officially unveiled its plan to go public later this year. According to Coinbase Blog, the company will do a direct listing of its Class A common stock, making existing shares available to the public.

North Carolina wealth manager Kingfisher Capital also made headlines after filing documents revealed that the firm had purchased 10,667 shares of the Grayscale Bitcoin Trust over the past few months.

Several brokerage firms in the United States, including the popular mobile-based Robinhood, are receiving blowback for halting trading on stocks like GameStop (GME) and AMC Holdings Inc. (AMC), which has been the primary story of the week after a retail investor-inspired short squeeze by members of the Reddit group r/wallstretbets pushed the prices of each stock up by hundreds of percent.

The traditional markets also saw a bounce following a minor sell-off yesterday. The S&P 500, NASDAQ and Dow all saw positive inflows and finished the day up 0.98%, 0.68% and 0.99% respectively.

BTC/USD daily chart. Source: Coin360

Bitcoins show of strength at the $32,000 coincided with a strong rally from many altcoins and currently the majority of the top 100 coins are reflecting 3% to 15% gains.

Cosmos (ATOM) rallied by 15.41%, Stellar (XLM) gained 13.91% and Compound (COMP) added 14.21%. Ether (ETH) price also increased by 5.96% and currently trades at $1,355.

The overall cryptocurrency market cap now stands at $984.6 billion and Bitcoin’s dominance rate is 63.2%.

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Bitcoin Investors Could Lose Everything, Warns BIS General Manager

Bitcoin Investors Could Lose Everything, Warns BIS General Manager
Bitcoin Investors Could Lose Everything, Warns BIS General Manager

Bitcoin is destined to fail due to its inherently risky nature that exposes investors to threats, said the General Manager of the Bank for International Settlements, Agustin Carstens. The executive, who has portrayed adverse feelings against the primary crypto for years, suggested that only central banks should issue digital currencies.

BIS GM Criticize BTC’s Risky And Volatile Nature

Bitcoin’s parabolic increase that took the asset from about $10,000 in early October 2020 to an all-time high of $42,000 in January 2021 and the subsequent sharp retracement towards $30,000 caught the attention of representatives of the traditional financial space.

While some praised the cryptocurrency for its gains, others warned of reaching a potentially bubbly territory and envisioned further corrections. Somewhat expectedly, the head of BIS entered the second camp. During a recent speech for the Hoover Institution, the long-term BTC critique took another stab at the first-ever cryptocurrency and its volatility.

Furthermore, the GM of the Basel, Switzerland-based institution, warned investors that they should be wary of potentially losing everything if they bet on the BTC horse.

“Investors must be cognizant that Bitcoin may well break down altogether.”

Previously, Carstens had questioned BTC’s efficiency and legality. He also advised the younger generations, which tend to be affectionate to bitcoin, to “stop trying to create money,” and, as most doubters, said that the cryptocurrency is a Ponzi scheme.

Agustin Carstens. Source: WSJ

Digital Currencies Are Central Banks’ Responsibility

Carstens used to be against all types of digital money, but he showed the first signs of a changed mind in 2019 when he said that virtual currencies could succeed and have value in certain conditions.

Being the head of the so-called bank for central banks, Carstens believes that precisely such organizations have to be responsible for developing, releasing, regulating, and managing digital currencies. He doubled-down on this narrative during the recent speech as well.

“Sound money is central to our market economy, and it is central banks that are uniquely placed to provide this. If digital currencies are needed, central banks should be the ones to issue them.”

He also admitted that BIS had established a designated team to research and trial digital currencies. The organization urged central banks to enhance their CBDC developments in 2020 as the COVID-19 pandemic highlighted the potential risks associated with paper money and physical transactions.

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Why a trader says a Bitcoin bottom is close, based on a key technical structure

Why a trader says a Bitcoin bottom is close, based on a key technical structure
Why a trader says a Bitcoin bottom is close, based on a key technical structure

Scott Melker, a cryptocurrency trader and the author of The Wolf Den Newsletter, believes a short-term Bitcoin bottom is close.

Melker often uses the relative strength index (RSI) indicator on the 4-hour and 6-hour candle chart time frames to identify potential trend reversals.

The RSI is an indicator that is used to evaluate whether an asset is overbought or oversold. If the RSI is over 75, the asset is overbought, and if it is under 30, it is oversold.

Bitcoin not oversold, but the bottom is likely soon

Technically, Melker explained that Bitcoin is not yet oversold, at least on the 6-hour time frame.

But, a bullish divergence with the RSI has been confirmed, Melker said. The 12-hour candle chart would also soon confirm the same structure, which would be positive for BTC in the near term. He wrote:

“6 hour bull div with RSI confirmed. 12 hour likely to confirm in 40 minutes. We had iffy divs on lower time frames yesterday building to these. Neither reached oversold. Can still drop and make larger div, but bottom ‘should’ be in or close. Should.”

6-hour price chart of Bitcoin. Source: BTCUSD on TradingView.com

There are also fundamental reasons why a short-term Bitcoin relief rally could occur.

First, yesterday, on January 27, the premium of Bitcoin on Coinbase rose significantly, reaching $200 at one point.

Although the price of Bitcoin naturally trades slightly higher on Coinbase than usual, this indicates that high-net-worth investors were aggressively accumulating the dip.

This trend explains the swift trend reversal Bitcoin saw under $30,000, recovering to around $31,000 within several hours.

Whales are likely trying to defend the $30,000 support area from being broken, as breaking below $30,000 would result in a more complex correction.

What happens next?

A pseudonymous trader known as “Salsa Tekila” said the current price action reminds him of September 2020.

At the time, Bitcoin seemed to be breaking down, but a bullish engulfing daily candle caused a trend reversal, leading the BTC rally. He said:

“The $BTC price action observed yesterday reminds me of September 24, 2020. I was massively short that day, betting on a break-down. The sell-side got BTFO impulsively after dip buyers show up. Someone big had bought. I see similarities with the 30k vicinity. Could be wrong.”

In the foreseeable future, Bitcoin overtaking the $33,000 level is critical for a short-term resumption of the rally. Until BTC solidifies $33,000 as a support level once again, the trend remains neutral to bearish.

But one positive trend is that stablecoin deposits to exchanges are rising once again. This shows that sidelined capital is moving back into the Bitcoin market, which could result in a short-term catalyst for BTC.

The price of Bitcoin already rose from around $30,500 to over $31,500 as stablecoin deposits rose.

The post Why a trader says a Bitcoin bottom is close, based on a key technical structure appeared first on CryptoSlate.

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