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Elon Musk Support May Take Bitcoin to a New ATH

February 1, 2021 at 13:17 by Ibrahim Anifowoshe

Elon Musk’s latest endorsement of cryptocurrency on his Clubhouse App chat caused Bitcoin prices to race toward $35,000.

The Tesla and SpaceX founder called the flagship cryptocurrency “a good thing.” He mentioned his regret for not hopping on board earlier. He added that Bitcoin is on the “verge of getting broad acceptance by conventional finance.” He said this responding to Andressen Horowitz and other prominent investors during a Clubhouse meetup on February 1.

This endorsement jolted the BTC exchange rate to 4.8% during the Asian and early European trading session to hit an intraday high of $34,728. At 13:54 GMT on Monday, Bitcoin was trading at $33,817, gaining 0.7% in the last 24 hours.

This follows his earlier support of Bitcoin on Twitter which led to a boost of retail interest on Friday, January 29. The high-profile tech celebrity edited his Twitter bio into just one word: Bitcoin.

This move helped raise the price of Bitcoin to a weekly high above $38,500. Many analysts have suggested that Mr. Musk may convert Tesla’s $19 billion worth of cash reserves or a significant part into Bitcoin.

Lark Davis, a crypto YouTuber, said on Monday:

The richest man in the world is a big fan! He must have a bag. Elon Musk probably going to announce his bitcoin buy soon. The guy has to have a few hundred million worths by now

Musk may cause a new ATH

With the Federal Reserve dovish outlook, a more than $3 trillion stimulus injection, unlimited bond-buying, near-zero interests rates, investors have begun to pour their capital into the Bitcoin market in the last eleven months. Institutional buyers like Microstrategy and Square see this as a hedge against inflation.

Just around the time of Musk’s statements, Bitcoin price briefly rose above its 200-period simple moving average resistance, signalling that bulls are looking to capitalize on the endorsement of the world richest man.

tradingview showing bitcoin break 200 sma

The dollar softened as Bitcoin gained upside momentum. This comes as investors are looking for safe-havens amid an assault on hedge funds and the Wall Street by a group of redditors.

Following this endorsement, there was a massive BTC outflows from Coinbase Pro wallets to its custody addresses. CEO of CryptoQuant, Ki-Young Ju noted this movement on Twitter:

It’s likely to be OTC deals from institutional investors. I believe this is the strongest bullish signal.

CRYPTOQUANT DATA showing massive outflow

Green Bridge Associates’ Marc Principato also sees a rally ahead in the Bitcoin market. He noted that:

Based on our specific rules, as long as price fluctuates above 27.5K, our outlook will continue to be BULLISH, even within this smaller range bound structure. 27.5K to 30K is a broader higher low area, and in the context of a bullish trend, higher lows often lead to higher highs.

trading view new ath prediction

Principato expects Bitcoin to hit its previous record high near $42,000.

Dmytro Volkov, CTO of the international cryptocurrency exchange CEX.IO, shared the bullish sentiment with respect of new registrations on their exchange. He told NewsBTC:

This Friday we have experienced an anomalously high number of new registrations on CEX.IO. We saw a similar surge in early January, but there were half as many registrations then. Right now, the number of new user registrations is about 4 times higher than normal. Other exchanges are seeing similarly sharp increases in user numbers.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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