Bitcoin pumps by 10% in minutes after Elon Musk’s bio update

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.