FX.co ★ Bitcoin continues to rise due to a message from Elon Musk

The first cryptocurrency continued to rise on Monday. Thus, the growth of its quotes continues, and this is all because of an announcement from Elon Musk on Sunday regarding when and under what conditions Tesla will resume accepting bitcoin payments for its cars. And if this is not a simple coincidence and bitcoin really grows due to Elon's comment, it can be assumed that the growth will end today, at most tomorrow. This news is encouraging, but it should be noted once again that Elon Musk is not the creator of bitcoin and not its main investor. Over the past year or two, there has been a trend that almost the CEO of Tesla controls the rate of the cryptocurrency. But this time, Musk said nothing shocking or discouraging. Firstly, it is completely incomprehensible when most miners will switch to renewable energy sources when mining bitcoin. Secondly, it may not happen very soon. Thirdly, Musk may report that Tesla has sold another 10% of its coins, which will lead to a new collapse of the main cryptocurrency. Therefore, we have not yet seen any real positive factor in Musk's statement. Moreover, more and more people openly accuse Musk of manipulating the cryptocurrency market, and the SEC (the US Securities and Exchange Commission) has once again become interested in him, and may start (or has already begun) another investigation against the businessman. For Musk, a $20 million fine is nothing. However, he could again be formally accused of manipulating the course. There is no other positive news for Bitcoin right now. Markets continue to be wary of previously reported information that the US and Chinese authorities may greatly tighten the circulation of cryptocurrencies. Therefore, we still believe that Bitcoin's growth is highly limited in potential. At the moment, bitcoin is trading above the $40,000 mark, that is, after its landslide fall, it managed to recover by $10,000. However, it should be remembered that no one spoke about the immediate fall of bitcoin to 10,000 per coin. On the contrary, you should bear in mind that after each strong trend in Bitcoin, a long period of consolidation and correction began, within which strong movements were also noted both up and down. Thus, now bitcoin can recover even up to $50,000 per coin, but this will not mean that the upward trend has been restored. We still believe that in the next couple of years, bitcoin will be under pressure from the market and strive for the $20,000 mark. Also, a lot will also depend on the fundamental background. If suddenly it sharply becomes more positive, then this can accelerate the growth of quotes of the main cryptocurrency. But the fact remains that the "bullish" trend is now considered complete.

Technically, bitcoin failed to work out the support level of $30,500 once again, but managed to raise it to the level of $40,000. Thus, despite breaking the downward trend line, it is now highly likely that Bitcoin is inside a sideways channel with an upper border just around the $40,000 level. Consequently, there is a high probability of a downward reversal today or tomorrow, with a new fall by 7-8 thousand dollars.