World’s Richest Man Elon Musk Increases Bitcoin Price By 20%: Is $ 40,000 Close Again?
The price of Bitcoin gets a boost from the richest man in the world, Elon Musk. The price of Bitcoin (BTC) has been correcting from the high of $ 42,000. However, this correction could have ended when a significant momentum reversal occurred in recent days.
The GameStop debacle raised many questions about the reliability and operations of the big players, after which more and more people began to claim that decentralization is the future. Among these people is Elon Musk, who included #Bitcoin on his Twitter profile and also wrote “in hindsight, it was inevitable.” A very enigmatic message, which some may interpret as that Musk is investing in Bitcoin.
However, this tweet and profile change from Elon Musk resulted in a further rally on January 29 with a price increase from $ 32,500 to $ 38,000 in a matter of minutes. The main questions now are: does this mean that the bull market continues and BTC will see new all-time peaks?
Bitcoin has a key level of $ 30,000
The deciding factor for the bullish continuation was finding support at $ 30,000, which has happened in the last few days. Since then, the next step for bullish continuation would be a break above the $ 34,000 resistance zone.
In large part thanks to Elon Musk’s tweet, the breakout was confirmed and Bitcoin began to accelerate strongly. The next level to break is $ 37,600-38,000, as that is the next significant liquidity area.
Currently, the price of Bitcoin is trying to break that resistance level at $ 38,000. If this area turns in search of support, a further bullish continuation towards the all-time highs is likely, and $ 50,000 comes into play.
Total market capitalization marks a new all-time high
The total capitalization of the cryptocurrency market has reached new all-time highs in the last 24 hours, accelerating to the $ 1.13 billion level. However, the total market capitalization and the price of Bitcoin are still far from the 21-week moving average (MA). That 21-week MA often sees a test of support before continuing higher.
Therefore, the levels to consider for the total market capitalization remain the same as before. If the market cannot continue to rally from here, the focus will be on $ 730 billion, as that would grant a change from support to perfect resistance from the previous all-time peak.
The weekly chart shows an apparent bullish cycle and a large gap between the 21-week MA and the current price. These two often roll back to each other to bring the markets back to the “mean” of the price movement. Therefore, such a correction would bring the price of Bitcoin to the region of $ 25,000 in the coming weeks. In the end, as long as Bitcoin remains above the 21-week MA, this bull market is very likely to continue.
Critical levels to watch out for for Bitcoin
Currently, the price of Bitcoin is trying to break the resistance at $ 38,000. If that breaks down, a continuation to new all-time highs seems inevitable, as $ 40,500 is the only level to watch after $ 38,000.
In that perspective, even the price targets of $ 45,000 and $ 50,000 are within range. However, if the price of Bitcoin cannot break above the $ 38,000 area, a retest of the $ 34,000 zone should be expected.
If that does not hold as support, a sharp decline towards the lows may occur along with more in-range price action. However, this would not be detrimental to the market from a broader perspective.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.