On Friday, Elon Musk changed his Twitter bio (1) with only one word – Bitcoin. As a result of this event, the price of the main cryptocurrency jumped (2) by 6 thousand dollars in 2 hours (thanks to the account, to which almost 45 million people are subscribed).
Musk himself commented that:
“I have to be careful what I say, it could affect the market. I’m a bitcoin supporter. I’m late to the party, but a supporter. Bitcoin is on the verge of being widely accepted by traditional financial people,” he said according to Forbes.
He added that he “doesn’t have a strong opinion on other cryptocurrencies.”
Note the resistance zone around $40,000. It started to form on a bar with extremely high trading volume (5). The next day the volume was also high, but the price did not fall. This indicates a massive Sell-Limit order area. Probably, professional operators were fixing profits and entering shorts.
When the price rose to this level again (6), the volumes were below the average – a sign of weak demand. It turns out that it takes more than a change in Ilon Musk’s tweet to break through this weakness zone.
From a technical point of view, the quote oscillates between the resistance line (3) and the rising trend line (4) near the tip of the formed triangle. This suggests that the market price of the coin is balanced. We expect low volatility in the next 1-3 days.