Did Elon Musk Materially Alter Bitcoin’s Outlook?

Bitcoin (BTC / USD) price outlook:

Bitcoin Price Prediction: Has Elon Musk Significantly Changed Bitcoin’s Outlook?

Bitcoin has been on its backfoot since setting a new record on Jan. 8, falling from $ 42,000 to below $ 29,000 in January alone. While speculative mania has been going on elsewhere, public interest in Bitcoin seemed to be waning, at least temporarily, and the largest cryptocurrency by market capitalization appeared to be vulnerable to further losses. Bitcoin initially bounced back from support in the $ 28,000-30,000 zone and received another boost when Elon Musk mentioned the digital asset in his Twitter bio.

Bitcoin (BTC / USD) price chart: Hourly frame (January 2021 – February 2021)

However, the attention Bitcoin is getting from Elon Musk is unlikely to have had a significant impact on the fundamental landscape. Government agencies and financial institutions will continue to be aware of the anonymity Bitcoin offers in transactions, and regulators will continue to evaluate the role of cryptocurrency in global markets. Regulatory concerns aside, it remains an immensely volatile asset.

Suffice it to say that Elon Musk’s comment did not resolve all – or even just one – of the critics’ concerns about the digital asset, but it did bring a higher technical break at a crucial point on the coin’s price chart. However, the pause may be enough to change the coin’s outlook in and of itself in the short term.

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in the my previous Bitcoin Outlook update, We highlighted a collection of resistors in the $ 35,000- $ 36,000 range that we’ve found Bitcoin to wear off gradually if it doesn’t break. Well, the barrier was quickly thrown aside after Mr. Musk’s intervention. As a result, the seemingly formidable resistance was broken and Bitcoin escaped the series of lows and lows that began to form a bearish pattern on the chart. The technical disruption sparked by the Tesla chairman may have enabled Bitcoin to avoid deeper declines.

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Currently, Bitcoin has to negotiate the resistance stemming from an upward trend line from early January and is currently trading around $ 37,400 to continue rising. A breach of the level could open the door for bulls to target the January 29th high of $ 38,610.

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Moving past the January 29 high could cause BTC / USD to rise even further, with subsequent resistance around the $ 40,000 mark – which coincides with the January 14 high – and the all-time high of around 42,000 Dollar.

On the flip side, the $ 30,000-28,000 support remains a major milestone for bulls. Should the price drop below the zone, BTC could accelerate downward as support is relatively weak up to the Fibonacci level around $ 24,230. Thanks to recent gains, previous resistance around $ 35,000 could serve as support going forward. In the meantime, keep up to date with the latest price developments and analysis via Twitter @ PeterHanksFX.

– Written by Peter Hanks, strategist for DailyFX.com

Contact and follow Peter on Twitter @ PeterHanksFX

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