World's richest man Elon Musk boosts Bitcoin worth by 20% — Is $40K again in play?

Bitcoin (BTC) has been correcting because the peak excessive at $42,000. Nonetheless, this correction may need ended as a major momentum shift occurred in current days. 

The GameStop debacle raised many questions on large events’ trustworthiness and exchanges, after which increasingly folks began to say that decentralization is the longer term.

Amongst these folks is Elon Musk who’s price practically $183 billion, in keeping with Forbes making him the world’s richest particular person. The Tesla CEO included #Bitcoin in his Twitter profile and likewise wrote “on reflection, it was inevitable.” A really cryptic message to his 44 million followers, which some could interpret as Musk investing in Bitcoin.

Looking back, it was inevitable

— Elon Musk (@elonmusk) January 29, 2021

Nonetheless, this tweet and profile change from Elon Musk prompted a brand new rally on Jan. 29 with worth surging from $32,500 to $38,000 in a matter of minutes. The first questions now are: does this imply the bull market is constant and can BTC see new all-time highs?

Bitcoin holds key $30,000 degree

XBT/USD 2-hour chart. Supply: TradingView

The two-hour chart exhibits a transparent bullish breakout after holding the numerous assist zone at $30,000.

The important breaker for bullish continuation was to search out assist at $30,000, which occurred in current days. Since then, the following step for bullish continuation can be a breakout above the $34,000 resistance zone.

Because the chart exhibits, and largely because of Elon Musk’s tweet, the breakout was confirmed, and Bitcoin began to speed up closely. The following degree to interrupt is $37,600-38,000 as that’s the following space of great liquidity.

At the moment, Bitcoin’s worth is making an attempt to crack that degree of resistance at $38,000. If this space flips for assist, an extra bullish continuation towards the all-time highs will seemingly happen, and $50,000 comes into play. 

Whole market cap makes a brand new all-time excessive

Whole cryptocurrency market cap 1-week candle chart. Supply: TradingView

The full cryptocurrency market capitalization has reached new all-time highs previously 24 hours, accelerating to the $1.13 billion degree.

Nonetheless, the entire market capitalization and the value of Bitcoin are nonetheless distant from the 21-Week MA. That 21-Week MA usually sees a assist check earlier than persevering with upward.

Due to this fact, the degrees to look at for the entire market cap are nonetheless the identical as earlier than. If the market can’t proceed going up from right here, $730 billion would be the focus as that will grant an ideal assist/resistance flip from the earlier all-time excessive.

BTC/USD 1-week chart. Supply: TradingView

The weekly chart exhibits an obvious bullish cycle and a giant hole between the 21-Week MA and the present worth. These two usually come again to one another to get the markets again to the “imply” of the value motion.

Thus, such a correction would deliver the value of Bitcoin to the $25,000 area within the coming weeks. Ultimately, so long as Bitcoin stays above the 21-Week MA, the continuation of this bull market could be very seemingly.

Important ranges to look at for Bitcoin

XBT/USD 3-hour chart. Supply: TradingView

At the moment, the value of Bitcoin is making an attempt to interrupt by the resistance at $38,000. If that breaks, a continuation towards a brand new all-time highs appears inevitable, as $40,500 is the one degree to look at after $38,000.

In that perspective, even worth targets of $45,000 and $50,000 are on the desk. Nonetheless, if Bitcoin’s worth can’t break by the $38,000 space, a renewed retest of the $34,000 zone ought to be anticipated.

If that doesn’t maintain for assist, a pointy fall towards the lows could happen together with extra range-bound worth motion. Nonetheless, this is able to not be unhealthy for the market from a wider perspective.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails threat. It’s best to conduct your personal analysis when making a call.