Where Ethereum and Bitcoin Headed After Musk’s Tweet

Bitcoin, Ethereum and even Dogecoin registered a spike in prices following Elon Musk’s tweet. The world’s richest person, Tesla and SpaceX Chief Executive Officer Elon Musk has been quite influential in terms of driving the price action of cryptocurrencies.

In his recent tweet, Musk stated that he would not be selling his Bitcoin, Ethereum and Dogecoin and that he still continues to own them. This tweet came after Elon Musk asked a question about the expected rate of inflation in the next few years.

Soon after that particular tweet, Bitcoin, Ethereum and even Dogecoin registered upward price movements on their respective charts. BTC was up by 3%, while Ethereum gained a little above 2% and Dogecoin zoomed up by 4%. Despite a positive price sentiment, cryptocurrency’s prices remain quite volatile. At press time these coins reversed some of the recent gains.

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Bitcoin was priced at $38,428 at the time of writing. It lost 0.8% of its market value. It is safe to say that BTC was consolidating as the coin has been struggling to move past the $39k mark. Strong support for the coin stood at the $37k mark, however, sharp resistance awaited the token at $40k.

In case BTC breaks on the upside and manages to climb over the $39k mark, the next stop would be around the $42k-$43k region. On the flip side, a breakthrough at the $37k support mark would push BTC to trade in between the $37k-$34k price levels.

The technical outlook however suggests bearish pressure in the market. The volume of Bitcoin was seen declining as the previous sessions closed in the red. The Relative Strength Index also corresponded with the bears hence sellers re-entered the market.

Awesome Oscillator that depicts market momentum. The indicator was seen turning green which meant that market momentum could change directions over the upcoming trading sessions. Bollinger Band indicate volatility and it flashed a squeeze which meant that prices could witness sharp fluctuations in the next trading sessions.

Ethereum was trading for $2528 at the time of writing. Prices were seen trading laterally and the coin depreciated slightly by a per cent after noting gains in the past 24 hours. Overhead price ceiling was at $2614, following which the coin could encounter strong resistance at $2722. On the other hand, ETH’s local support was at $2450.

The volume of Ethereum traded has declined which is correlated to a fall in the number of buyers in the market. The technical outlook painted a bearish pull. Ethereum was seen below the 20-SMA line and that corresponds to sellers taking charge of the current price momentum.

Bollinger Bands tightened and that is a sign of sharp price volatility. Although ETH was trading sideways, prices could either swing up or down sharply over the next trading sessions. The Relative Strength Index was below the half-line indicating more number of sellers.

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