Friday’s trading session witnessed a fresh bout of profit-taking after Tesla CEO Elon Musk shared some cryptic tweets, lamenting his break up with lead crypto asset, Bitcoin. Musk posted a meme about a couple breaking up over excessive quoting of Linkin Park lyrics while tagging the meme with “#Bitcoin” and a heartbreak emoji.
Bitcoin plunged from highs of around $38,700 to $37,500 in an hour. Bitcoin kept falling till it reached lows of $35,593 as Elon Musk bombarded the space with more cryptic posts in the thread including another breakup-themed tweet on falling crypto prices as well as a post on Dogecoin (DOGE).
Elon Musk’s Bitcoin breakup tweets come right before the largest Bitcoin event in history- the Miami Bitcoin 2021 event. While Elon Musk’s crypto Twitter posts might have caused more rage in the community, a Twitter user, Nick. C however believes the downturn was induced partly by lack of substantial volume. Stating:
”Technically the #Bitcoin drop today wasn’t because of Elon Musk entirely. We were lacking in volume as we pumped up past $39K. When you see the price increasing without volume, 9 times out of 10 the next move is down. The tweets from him didn’t help though”
Bitcoin’s downside move also coincided with a big spike in the U.S. dollar index (DXY), with the latter surging by 0.18% to reach a three-week high of 90.627. This further raises speculation that more than a single factor contributed to Bitcoin’s plunge during the late Thursday and early Friday session.
At the other end of alternative cryptocurrencies, selected tokens such as UMA (+14.89%), Verge (XVG, +8.75%), Nano (+8.98), NuCypher (NU, +31.25%) MCO (also CRO token, +12.13%), Theta (+3.13%), Filecoin (+ 4.42%), Curve DAO Token (CRV, +7.51%) managed to suppress slightly the widespread selling pressure by trading in the green, as of press time Bitcoin also traded at $37,182.
Intotheblock ”In and out of Money” indicated that strong support lies at $35,600 as Bitcoin retests the $36k level once more. Stating:
”Following the recent Musk tweet, #Bitcoin is currently retesting the $36,000 level again. The IOMAP reveals that 622k addresses had previously bought approximately 570K $BTC at a price of around $35.6k. There is expected to be strong support from new buyers and current holders.”
IOMAP, Courtesy: IntoTheBlockWhile the question of whether Bitcoin’s bull has come to an end pervades the heart of many, crypto investor Lark Davis, Cryptolark believes Bitcoin has barely even started while posting a chart of Bitcoin Realized Cap Hodl Waves.
Image Credit: IntoTheBlock, Glassnode, Shutterstock
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