June 23, 2021

Bitcoin Posts Comeback Rally on Elon Musk Comment; Analyst Sees ATH

4 min read

Bitcoin costs raced towards $35,000 as European investors woke up to Elon Musk’s latest cryptocurrency endorsement.

The BTC/USD exchange rate increased as much as 4.8 percent during the Asian and early European session to hit an intraday high of $34,728. That followed a 2.63 percent dive recently that closed January at a 14.13 percent regular monthly earnings.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin attempts to break above its short-term trendline resistance. Source: BTCUSD on TradingView.com Bitcoin attempts to break above its short-term trendline resistance. Source: BTCUSD on TradingView.com Musk Has Bitcoin The jolt of recent retail interest followed Tesla and SpaceX creator Elon Musk– a high-profile tech star in his own way– relaunched himself as a Bitcoin supporter. In an audio teleconference with venture capitalist Andreessen Horowitz and “other financiers, Mr. Musk called the cryptocurrency & ldquo; a good thing, & rdquo; specifying that it is basing on the & ldquo; edge of getting broad acceptance by standard financing.”

& rdquo; Mr. Musk’s comments followed his puzzling Twitter bio upgrade on Friday in which he modified his introduction to simply one word: Bitcoin.

That assisted raise the cryptocurrency to its weekly high above $38,500 as many experts kept in mind that Mr. Musk would convert his companies’ cash reserves into Bitcoin. However, it pared those gains entirely heading into the weekend, just to resume its upside proceed Monday after Mr. Musk’s newest declaration.

“& ldquo; The richest guy in the world is a huge fan! He needs to have a bag,” & rdquo; said Lark Davis, a crypto YouTuber, on Monday. “& ldquo; Elon Musk probably going to announce his bitcoin purchase quickly. The person has to have a few hundred million worths by now!< span style="font-family:“

-apple-system, BlinkMacSystemFont,’Segoe UI’, Roboto, Oxygen-Sans, Ubuntu, Cantarell,’Helvetica Neue’, sans-serif”> & ldquo; A super-dovish Federal Reserve, near-zero rate of interest, unlimited bond-buying, and stimulus injections worth more than $3 trillion has triggered financiers to pour their capital into the Bitcoin market in the last eleven months. The majority of them, consisting of business firms MicroStrategy and Square, see the cryptocurrency as a hedge versus inflation.

US Dollar, US Dollar Index, DXY
United States dollar index’s gains stand restricted by concrete resistance locations. Source: DXY on TradingView.com US dollar index’s gains stand restricted by concrete resistance locations. Source: DXY on TradingView.com Tesla has$ 19 billion worth of money reserves that may likely lose their dollar worth should the Fed’s dovish program continue. That has actually raised the possibility that Mr. Musk—may transform a portion– if—not all– of its money balances to Bitcoin.

All-Time High Ahead?

The current push upward has actually enhanced Bitcoin’s prospects of tape-recording another bull run to retest its record high near $42,000. For beginners, the cryptocurrency is noticeably attempting to break out from a Rising Wedge pattern. Its primary upside target is near $50,000.

Moreover, Marc Principato, the executive director of Green Bridge Investing, sees a so-called Wave 5 brewing on the Bitcoin charts, expecting that maintaining support above the $27,500-$30,000 location would push the cost back past $40,000 in the coming sessions.

“& ldquo; Based on our specific rules, as long as the price fluctuates above 27.5 K, our outlook will continue to be bullish, even within this smaller variety bound structure,” & rdquo; the analyst wrote. “& ldquo; 27.5 K to 30K is a more comprehensive higher low location, and in the context of a bullish trend, higher lows typically cause higher highs.”

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
& rdquo; < img loading="lazy" class="size-large wp-image-455702" src="https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-860x364.png" alt="Bitcoin, cryptocurrency, BTCUSD, BTCUSDT" width="860" height="364" srcset="https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-860x364.png 860w, https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-460x195.png 460w, https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-768x325.png 768w, https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-1536x651.png 1536w, https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-2048x868.png 2048w, https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-750x318.png 750w, https://www.newsbtc.com/wp-content/uploads/2021/02/Screenshot-2021-02-01-at-2.58.32-PM-1140x483.png 1140w" sizes =" (max-width: 860px) 100vw, 860px"/ > Bitcoin bullish setup highlighted by Marc Principato. Source: BTCUSD on TradingView.com Bitcoin bullish setup highlighted by Marc Principato. Source: BTCUSD on TradingView.com

Dmytro Volkov, CTO of the worldwide cryptocurrency exchange CEX.IO, matched the bullish sentiment by supplying the details of their newest signup data. He kept in mind that the number of brand-new users on their exchange increased after Mr. Musk’s pro-Bitcoin upgrade.

“& ldquo; This Friday we have experienced an anomalously high variety of new registrations on CEX.IO. We saw a similar rise in early January, however there were half as lots of registrations then,” & rdquo; he informed NewsBTC via email.

“& ldquo; Right now, the number of new user registrations has to do with 4 times greater than normal. Other exchanges are seeing similarly sharp boosts in user numbers,” & rdquo; he added.