Is Elon Musk pushing bitcoin through his tweets? Make the businessman tweet

The article has been translated using AI technology from the Spanish edition. This process may cause errors.

Opinions expressed by Entrepreneur contributors are their own.

Many people talk about volatility in Bitcoin and the markets criptomonedas. However, those that have invested in Bitcoin will still be aware of it. They can also take advantage price cycles to quickly withdraw some of their profits and gain more profit from the market.

The recent setbacks in Bitcoin have been blamed on Elon Musk’s tweets. Is it Musk the businessman or the cryptocurrency that causes him to tweet?

Musk tweets

After a Twitter conversation with Peter Schiff on February 20, he stated that the prices of BTC and Ethereum seemed high to him.

A 7-day bearish rally will begin on February 22nd. It would go from a maximum price of 58.367 dollars to a minimum price of 43.016 dollars (-26.51%).

Musk posted a picture on Twitter, May 12th showing that he had suspended the purchase of Tesla cars with Bitcoin.

The lowest price for the most well-known cryptocurrency was $ 48,500. It would then close at $ 49.498.77. This is an increase of -12.78% from its initial price of $ 56.753.19.

The CEO of Tesla posted a meme on June 3 that suggested a possible break with Bitcoin. It was expressed using the heartbroken emoticon.

Bitcoin will present a 5% Retracement today (-2,098 USD).

The graph

Trading View

This first picture shows the historic maximum (ATH), at $ 64 899, reached April 14, with a minimum $ 28,800. It would then become support on Dec 31. On which point it would “retest”, on Jan 22 and 27,. These 3 setbacks are highlighted in the rally.

Refunds

  • 22 February (-26.51%).

The graph showed that the price was at the “Overbought”, according to Stochastic and RSI indicators, before the bearish rally (0.26-51%). The Fischer Transform indicator also showed an apparent price reverse. The volume, however, was below average. This indicates that there is not much interest from the market at the time for pushing the price to new heights.

The market may project a bearish scenario if the price reaches the level of overbought. The Fisher Transform indicator also shows a reversal. This could indicate that the market is valuing the percentage or withdrawal of profits.

The confirmation of the price action in the bearish scenario for trading would make it a great entry point to SHORT operations and generate profits from the Bitcoin’s depreciation.

  • April 14, (-27.51%).

Trading View

The February retracement was characterized by both volume and the RSI, and Stochastic indicators. These indicate that we have the data necessary to determine if a new retracement is possible, but this time using the projection of a Bearish Divergence.

We can project a trend line (in red) on maximums made on April 14th, March 14th, and April 14. The same is true for maximums in RSI. This disparity is called Regular Bearish Divergence and is used to indicate price retracement.

  • May 10, (-49.62%)

Trading View

We could also see the retracement of the Fisher Transform bearish crossover and decline in the RSI by projecting Fibonacci Channels. This allowed us to detect the April 14th downtrend.

Trading View

The RSI and Fisher Transform both showed exit signals on May 10th, which could indicate that the Fibonacci Channel’s resistance would be insurmountable.

  • June 3 (-49.62%)

A price pattern known as “Symmetric Triangle” is currently being displayed in Fibonacci channel 1. ( 46960.44). It would begin May 19.

If a price pattern breaks down, at any level of support or resistance, you must wait until price confirmation is received before opening any position ( trading), profiting from the market or taking other actions. Since the supports and the resistances are checked again for price.

The graph indicated the time of setbacks prior to every Elon tweet. This opened the possibility that Elon was motivated to tweet the tweets after receiving confirmation of each setback.

Nowadays

The theory of the Symmetric triangle states that Height could be used to represent growth or decline of assets depending on how the pattern is broken down. We can expect growth to exceed $ 49,000 if it occurs at resistance and finds support. If it occurs at support the price could fall below $ 22,000 if the breakout happens at support.

These movements do not occur suddenly and previous created support and resistances are again tested. Setbacks can be considered healthy market movements since they create new supports for assets that have grown parabolically. Remember that 2017’s historical maximum was $20,000, and it would be exceeded in 2020 by $ 44,895 (+ 224.60%) within four months.

“Market Sentiment”

If there’s no confirmation that there has been a Bear Market or Bear Market it doesn’t mean there won’t be one. The percentages of the retracements and Fibonacci channels on which they are interacted, as well as the pattern of the symmetrical triangle in which price is located, all indicate uncertainty about the Bullrun.

The same uncertainty makes it harder to pay attention to news like the Bitcoin ban in China, the setbacks Elon Musk is causing by his level of Fear, Uncertainty and Doubt. Positive news, such as Nayib Bukele’s announcement about Bitcoin being accepted as legal tender in El Salvador or Bitcoin’s presence in Indy 500, is also overlooked.

The positive news would have occurred at a time when Bitcoin was reaching all-time highs. This would increase the FOMO (Fear of Missing Out). It is clear that technical analysis and interpretation are key to your investment success. Mornings can be more lucrative if you do your own technical analysis.

Apart from the work of Mexican Exchange MEXO which offers free courses to traders, investors, and other enthusiasts, we also have pages, videos, and podcasts that offer tips and advice to those interested in learning and improving their skills.

Publiated at Thu 29 July 2021, 17:43:07 +0000

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