August 17, 2022

Bitcoin on Track for $50,000 as Tesla Buys Into Crypto Craze

3 min read

Bitcoin made a new record high of $44,900 after Tesla revealed a huge financial investment in this cryptocurrency. Though BTC has actually stabilized after a substantial relocation, it went into a no-trade zone as market individuals wait for a clear signal.

Bitcoin Moons on Musk Double-Take

Despite a series of tweets where Tesla and SpaceX CEO Elon Musk backed Dogecoin, the South African entrepreneur today positioned bets elsewhere.

Musk first publicly revealed his support for Bitcoin on Jan. 29, tweeting that “& ldquo; in retrospection, it was inevitable & rdquo; after changing his Twitter bio to include one word: Bitcoin.

FOMO kicked in amongst crypto enthusiasts after the tweet went viral, forcing them to hurry to exchanges to get a piece of BTC.

The significant spike in buying pressure resulted in a 19.60% upswing that pushed Bitcoin’s market value from a low of $32,300 to a high of $38,660 within a couple of hours.

Bitcoin US dollar price chart
< img loading="lazy" class= "wp-image-79681 size-full" src=""alt=" Bitcoin United States dollar rate chart"width ="2696"height=" 1514"srcset= " 2696w, 784w, 1024w, 768w, 1536w, 2048w" sizes="(max-width: 2696px)100vw, 2696px"> BTC/USD on TradingView As the buzz around Bitcoin faded due to

the absence of any substantial announcements from the business mogul, rates dropped back to$32,000. The volatile movement was described within the cryptocurrency neighborhood as & ldquo; Elon’s pump and dump. & rdquo; It took control of a week for BTC to recover, forming a cup and deal with pattern along the way. And retesting the$38,400 assistance level, Tesla finally revealed its Bitcoin financial investment worth $1.5 billion. Bitfinex CTO, Paolo Ardoino, shared with Crypto Briefing. & ldquo; The diversification of Tesla’s

“financial investment policy into digital assets includes further momentum to Bitcoin’s rise as institutional investors are rushing towards the king of crypto. The tectonic plates of the international financial investment landscape have moved. Etheruem and altcoins are also in the green while Tether tokens(USDt) make their way towards a market capitalization of $30 billion. & rdquo; The statement triggered panic buying among investors.”

Consequently, Bitcoin’s market price rose by almost 14%to exceed the cup and handle’s target by $300 and reach a new all-time high of$44,900. Now that the flagship cryptocurrency seems to have actually stabilized,

market individuals question where it might be headed next. Leading Token Enters No-Trade Zone Bitcoin is presently in price discovery mode, so its upside

potential is not restricted by any resistance barrier. But

when considering the Fibonacci retracement level determined from Jan. 27’s low of $29,160 to the current high of$44,900, multiple interest locations can be specified. The most significant rate variety to see based upon this technical sign lies in between $44,900 and$41,500. Just a definitive 1-hour candlestick close

above or listed below this trading pocket will figure out where Bitcoin is heading next. Another increase in buying pressure that sends out BTC above the resistance might be significant enough to see it increase towards the 127.2%Fibonacci retracement level at nearly$50,000.

BTC/USD on TradingView Nonetheless, If financiers book profits at the current levels pressing Bitcoin listed below the 78.6% Fibonacci retracement level, another among “& ldquo; Elon’s pump and dumps” & rdquo; might take place.

Under such situations, the flagship cryptocurrency may drop towards the 61.8% Fibonacci retracement level at $38,900.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.