The price of the cryptocurrency temporarily fell below the psychologically significant 30000.0 mark this week before returning back above this major threshold. Part of the reason why the crypto advanced had to do with Elon Musk's recent comments concerning Tesla and SpaceX, saying that both companies use Bitcoin.
Musk also stated that Tesla would likely increase its holdings of Bitcoin, provided that the method for crypto mining becomes greener. This represented a much-needed adrenaline shot for the reeling Bitcoin. However, it seems unlikely that a new uptrend can be initiated solely on the strength of this momentary uptick in enthusiasm.
Still, the underlying price action continues to consolidate around the 61.8 per cent Fibonacci retracement level from the previous rally, representing a major make-it-or-break-it point. This is owing to the fact that this is the last Fibonacci barrier before the price breaks decidedly down south.
That is why the price action is likely to continue consolidating around the current spot price in the near future, thus creating range-trading opportunities in the short term. Meanwhile, the current earnings season is just picking up speed and would likely bolster volatility in the market for higher-risk assets. This is also likely to have a spillover effect on the price of Bitcoin, prompting more fluctuations around the 61.8 per cent Fibonacci.
|Short Term||Long Term||Net % Gains|
|5447.00 USD||678.00 USD||Pending||Pending||
|5447.00 USD||678.00 USD|
|Net % Gains|
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