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BTC starts the new week at a pleasantly high level thanks to support from a well-known source, Elon Musk. Are good times coming back? After spending weeks living near $ 30,000, did BTC manage to stage a permanent return and form into an attack on major resistance?
Musk’s tweet changes the rules of the game again
Tesla abandoned payments at BTC earlier this year shortly after announcing them and without actually processing any transactions at BTC. According to Musek, this was due to the allegedly inappropriate consumption of energy associated with mining.
Musk, widely criticized for both his logic and its impact on BTC’s price action, did not give up, and his subsequent tweets about various aspects of BTC and altcoins yielded noticeable but relatively subdued price movements.
Now it seems that the self-proclaimed “Technoking” has adjusted its approach to social media once again. In response to a complaint from Magda Wierzycka, CEO of Sygnia, a financial services company, he reopened Tesla’s doors:
“Once the sensible use of clean energy is confirmed by miners with a positive trend for the future, Tesla will resume payments with BTC”
-reacted by Musk, adding that Tesla still has 90% of the original $ 1.5 billion purchase of BTC.
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Indicators bring mixed feelings
Analytical tools that cover price-to-asset ratio, output-to-earnings ratio (SOPR), and inventory-to-flow ratio firmly point to undervalued BTC at current prices.
As such, short- to medium-term return forecasts are being crept in – one of which is demanding $ 85,000 over the coming months, while the stock-to-flow model maker PlanB still believes $ 100,000 is likely this year.
As PlanB noted, among other things, BTC’s mempool experienced a major reset this month, which means that transactions are currently extremely cheap compared to the expected processing time. Not only is this a “great time” to reorganize and consolidate BTC’s own wallets, “but according to Cane Island Alternative Advisors investment manager Timothy Peterson, mempool is now back where it was before BTC began to grow parabolically in late 2020.
The battle for $ 40,000 is in full swing
Traders who wake up on Monday will be particularly interested in one level due to the latest rise in BTC. After waiting for a decisive move during the weeks of price depression, they now have a real chance of witnessing an attack on $ 40,000 and potentially more.
That in itself would be significant – estimates generally suggest lower prices in the short term before rebounding, but BTC has so far refused to comply.
The baseline data reflect the confusion in mining companies
Outside the chain, the foundations of the BTC network look a little less solid. As the debate over energy for BTC rages, miners continue to face pressure, especially from China, where there is a struggle over who is allowed to mine using local energy.
Some see this as an intervention and even a ban on BTC’s main energy source, while others argue that, as always, miners will simply adapt to change and move elsewhere. This could also lead to the transfer of a dominant position in the hashrate to another jurisdiction.
Volatility says the peak is NOT
However, for one hedge fund manager, there is no indication of a peak BTC price. In addition to data from Bloomberg Intelligence Dan Tapeir, founder and CEO of DTAP Capital, volatility is simply too low to indicate that this is a local cap.
“BTC has never peaked with such low volatility. The huge rise is still ahead of us. “
-He said Monday in a discussion on Twitter.
Conclusion
Elon Musk is testing his power again. What do you think? Will his power weaken, or will he still stay where he is?
