Elon Musk, popular tech entrepreneur and Tesla CEO, is making waves yet again after he changed his Twitter bio to include “Bitcoin.” Right now, the said bio shares a distinct similarity with the one owned by Twitter CEO Jack Dorsey, who himself is a Bitcoin proponent.
What is even more newsworthy, however, is the fact that the mere act may have contributed to Bitcoin’s price pumping by 10% in 15 minutes. At press time, BTC’s price was continuing to climb on the charts.
Source: Twitter
Musk’s update came as a surprise to many, especially since most expected the entrepreneur to tweet about Dogecoin. It comes on the back of the drama between the Reddit community WallStreetBets [WSB] and main street hedge funds going on. In fact, it was during this episode that Dogecoin pumped by a whopping 800%.
With Musk’s involvement, all the bearish indicators on the cryptocurrency’s chart seemed to be rendered invalid, with the cryptocurrency trading around the $35,700-level, at press time. The daily closing price will decide where the price will head in the near future.
Musk’s bio renders on-chain indicators void
Source: CryptoQuant
According to the attached chart, the whale ratio had risen to the 0.9-level, a bearish indication of whales waiting to sell their holdings. As this indicator was closing in on the bearish level, a drop was the only logical outcome.
However, Elon Musk’s involvement has caused this on-chain indicator to be ignored by the frenzied mass.
Source: CryptoQuant
In addition to the above on-chain indicators, miners were also depositing their BTC holdings to exchanges – Another bearish finding. Miners are a constant source of selling pressure in the Bitcoin community, hence, a huge deposit from miners is usually a tell-tale sign of a sell-off.
Bitcoin price chart
Source: BTC/USD on TradingView
Although the long-term prospects of Bitcoin were bullish due to the formation of a descending channel, a breakout from this isn’t near. A retest of the lower trendline is more than expected. Or at least another test of the yearly-open at $28,956.
With the price pumping above the channel, a breakout has been set in motion for Bitcoin. A close above the critical supply barrier from $36,500 to $38,000 will determine where the price will head in the near-term.
A daily close above this level would highlight a bullish outlook for the coin, one which includes $40,000 and perhaps, a retest of the ATH at $42,000. Failure to close above this level could prolong Bitcoin’s consolidation phase.
