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.

Musk recently tweeted that he wouldn’t be selling Bitcoin, Ethereum, and Dogecoin but that he will still own them. Elon Musk had asked Musk about the inflation rate expected in the future.

The price of Bitcoin, Ethereum, Dogecoin and Ethereum all rose within a matter of minutes. BTC rose by 33% and Ethereum climbed by slightly more than 2%. Dogecoin saw a 4% increase. Despite a positive price sentiment, cryptocurrency’s prices remain quite volatile. These coins have reversed some recent gains at press time.

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Review of Bitcoin Prices: A Four Hour Chart

Bitcoin had a price of $38,428 when this article was written. It has lost 0.8% from its market value. BTC is consolidating, as it has struggled to surpass the $39k mark. At the $37k mark there was strong support, but at 40k sharp resistance.

If BTC gains momentum and climbs above the $39k price mark, then the next target would be the $42k to$43k area. BTC would trade at between $37k to $34k if it reaches the $37k support level.

Bitcoin Technical Analysis

Image source: TradingView USD/BTC

However, technical indicators point to bearish market pressure. As the last sessions ended in red, Bitcoin volume was also seen decreasing. Sellers re-entered market after the Relative Strength Index also fell in line with bears.

The Awesome Oscillator depicts market momentum. This indicator turned green, which indicated that the market momentum might change direction in the coming trading sessions. Bollinger Band indicates volatility, and flashed an orange squeeze that indicated sharp price fluctuations during the next trading session.

Ethereum Price Analysis: Four-hour Chart

At the time this article was written, Ethereum was traded at $2528. After the 24 hour gains, prices were trading in a lateral fashion. The coin lost 1%. After the overhead price ceiling at $2614, strong resistance could be encountered at $2722. On the other hand, ETH’s local support was at $2450.

Ethereum Technical Analysis

Image Source: TradingView/USD

Ethereum’s volume traded fell which was correlated with the fall of the market buyers. Technical outlook showed a bearish pull. Ethereum fell below the 20 SMA line, which indicates that sellers are taking control of current momentum.

Bollinger Bands tightened which indicates sharp price volatility. Even though ETH trades sideways at the moment, it is possible for prices to swing up or downwards in the coming trading sessions. Relative Strength Index was lower than the half-line which indicates more sellers.

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