The price of Bitcoin went straight to $ 46,000, after a tweet from Elon Musk caused panic in the market.
Basically the tweet was to announce the suspension of the Bitcoin payment method, for purchases of Tesla vehicles.
But what really caused negativity was what was used as an argument for making this decision, as the statement says they are concerned about the rapid increase in the use of fossil fuel for mining and Bitcoin transactions.
However, as Pompliano puts it, this theory of Bitcoin’s environmental footprint has been repeatedly debunked. More than 75% of BTC miners use renewable energy.
Elon… you realize that 75% of miners use renewable energy, right?
This energy story has been debunked over and over again.
– Pomp 🌪 (@APompliano) May 12, 2021
Still, the FUD always wreaks havoc, and this time it was no exception. Panic took over the market, and among leveraged positions and investors not well adapted to these circumstances, the price went to a daily low today of $ 46,000.
Meanwhile, institutional investors continue to accumulate taking advantage of the discount. To show the recent outflow of more than 10,000 BTC from Coinbase, into cold wallets created to trade with these market participants.
Elon Musk-driven FUD has yet to elicit too negative a signal on Bitcoin price
With yesterday’s fall, the price turned bearish in the very short term, causing losses to spread today to a low of 46k.
However, the bulls quickly put pressure on the support near $ 48,000, defending the medium-term trend, which has been dormant for almost 3 months.
But as long as the price remains above $ 45,000 we are facing a simple break before continuing to rise.
The bulls defend the price of Bitcoin after the fall caused by Elon Musk. Source: TradingView.
Some more volatility to the downside seems quite likely before resuming the trend
When we look at the monthly chart we notice a mega bullish momentum, which now seems to be giving way to a healthy and necessary correction.
This retracement could easily go to find $ 43,000, which coincides with the 38.20% Fibonacci. We may even see a little more sales. After this, we would quickly see the bulls regain control, leaving rejection and making bearish intentions look like a simple excess of volatility.
The forecast remains bullish for the next few weeks / months. Demand that is generated at discounted prices will easily drive the price of Bitcoin to $ 80,000 in the near future, even when negative news like Elon Musk gets in the way. If that goal falls short, $ 98,700 is next.
All our publications are informative in nature, so in no case should they be followed as investment advice.
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