In the wake of yesterday's review, let's take a look at the bitcoin chart. Yes, the support level at 31,082.82, marked with a red dotted line, held out after a false breakout, which ended up as a bullish engulfing candlestick pattern.
Such a technical picture creates preconditions for the growth of BTC/USD, but the answer to the question "Side or triangle?" is still to be found. So, the closest target for the bitcoin price recovery is the level of 34,708.27. The sloping resistance of the supposed descending triangle also passes there. The implementation of a bullish or bearish scenario for the main cryptocurrency largely depends on how the price behaves relative to this border.
There are now two technical options for the development of events that are most likely. The first is a rise to the level of 34,708.27, confirming it as resistance, as well as the upper border of the triangle. Against this background, BTC/USD may return to support at 31,082.82, marked with a red dotted line, and form an exit from the downward pattern. In this scenario, the likelihood of falling into the $20,000 area increases.
The second scenario is an increase to the level of 34,708.27, a breakout and consolidation above it. Then bitcoin will have a chance to rise to the upper border of the sideway near $40,000 per coin.
What about Elon? Did he help bitcoin? Maybe. Crypto community members were expecting support from him yesterday at the B Word conference. And they got it. Is this the only growth factor for BTC/USD? Hardly, rather a pleasant coincidence.
On Wednesday, Elon Musk, Cathie Wood, and Jack Dorsey talked about cryptocurrency. The virtual conference was hosted by the Crypto Council for Innovation. The event was held to "demystify and destigmatize" the cryptocurrency.
Musk's statements about bitcoin were perhaps the most anticipated after Tesla previously pulled out of public support for the cryptocurrency due to unsustainable mining. His comments at the event were mostly positive: "Overall, I support bitcoin, Tesla owns bitcoin, SpaceX owns bitcoin, and I do personally own bitcoin, a bit of Ethereum, and Dogecoin, of course."
In this case, Elon Musk made his views clear, clearly stating his personal support for bitcoin and mentioned that while not dumping them: "If the price of bitcoin falls, I will lose money. I definitely do not believe in getting the price high and selling, or anything like that. I would like bitcoin to succeed."
As a result, bitcoin rose slightly, returned the losses of the previous day, and now maintains a power reserve of at least $34,000 - $35,000 per coin. And now it is technically a good entry point for a cautious buy, the scenario of which was discussed earlier.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.