Where Ethereum and Bitcoin Headed After Musk’s Tweet

Where Ethereum and Bitcoin Headed After Musk's Tweet

Bitcoin, Ethereum and even Dogecoin saw price surge after Elon Musk’s Tweeter. The richest person in the world, Tesla and SpaceX CEO Elon Musk has been very influential in terms of driving the price action of cryptocurrencies.

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

Shortly after this particular tweet, Bitcoin, Ethereum, and even Dogecoin saw upward price moves on their respective charts. BTC rose 3%, while Ethereum gained just over 2% and Dogecoin climbed 4%. Despite positive price sentiment, cryptocurrency prices remain quite volatile. At press time, these coins have reversed some of the recent gains.

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Bitcoin Price Analysis: Four-Hour Chart

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 struggled to break above the $39,000 mark. A strong support for the coin stood at $37,000, however, a strong resistance awaited the token at $40,000.

In case BTC breaks higher and manages to break above the $39,000 mark, the next stop would be around the $42,000-$43,000 region. On the other hand, a breakout at the $37,000 support level would push BTC to trade between the $37,000 to $34,000 price levels.

Bitcoin technical analysis

Image source: TradingView BTC/USD

The technical outlook, however, suggests downward pressure in the market. Bitcoin volume was seen falling as previous sessions ended in the red. The relative strength index also corresponded to the bears, hence the re-entry of the sellers into the market.

Awesome oscillator that depicts market dynamics. The indicator has been seen to turn green, which signifies that the market momentum might change direction in the upcoming trading sessions. The Bollinger Band indicates volatility and it has been showing compression, which means that prices could experience strong swings in the coming trading sessions.

Ethereum Price Analysis: Four-Hour Chart

Ethereum was trading for $2528 at the time of writing. The prices were seen trading sideways and the coin depreciated slightly by 1% after recording gains in the past 24 hours. The general price cap was $2614, after which the coin might encounter strong resistance at $2722. On the other hand, the local support for ETH was $2450.

Ethereum technical analysis

Image source: TradingView ETH/USD

The volume of Ethereum traded has decreased, which correlates with a drop in the number of buyers in the market. The technical outlook painted a bearish pull. Ethereum was seen below the 20-SMA line and this is consistent with sellers supporting the current price momentum.

The Bollinger Bands have tightened and this is a sign of high price volatility. Although ETH is trading sideways, prices could rise or fall sharply over the next few trading sessions. The Relative Strength Index was below the half line indicating more sellers.

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