Bitcoin price pump of 20% triggered by Elon Musk

Bitcoin price pump of 20% triggered by Elon Musk, the world’s richest man

The richest man in the world, Elon Musk, is pushing the Bitcoin price up by 20% with just a single tweet. Does this put the $40,000 back in play?

Bitcoin (BTC) has gone through a prolonged correction phase since peaking at $42,000. However, this correction may have been ended by Elon Musk. At least that is how it seems. In any case, the Bitcoin price has been able to hold a critical level and make up ground again.

The whole thing was triggered by the GameStop debacle, which raised many questions about the trustworthiness of the major parties and the exchanges. A circumstance that has played into the hands of Bitcoin and Crypto Trader cryptocurrencies in general with their narrative of decentralisation. Headlines like this are making more and more people realise how unfair and flawed the current system is. Accordingly, more and more people are looking for a fairer alternative.

Among these people is Elon Musk, who is worth almost $183 billion according to Forbes, making him the richest person in the world. The Tesla CEO mentioned Bitcoin on his Twitter profile, writing:

In hindsight, it was inevitable

A very cryptic message to his 44 million followers that some might interpret as Musk investing in Bitcoin.

In any case, this tweet and Elon Musk’s profile change triggered a new Bitcoin price rally today, 29 January. The price per BTC skyrocketed from $32,500 to $38,000 in a matter of minutes.

This of course makes many bullish eyes light up again. The most important questions now are: Does this mean that the bull market will continue and will the Bitcoin price see new all-time highs?

Bitcoin price holds the critical mark at $30,000

According to van de Poppe, the 2-hour chart shows a clear bullish breakout after bitcoin price held the key support zone at $30,000.

The key breakout for the rally to continue was to find support at $30,000, which happened in the last few days. After that, the next step for a bullish continuation would be a breakout above the $34,000 resistance zone.

As the chart shows, and mainly thanks to Elon Musk’s tweet, the breakout was confirmed and the bitcoin price started to accelerate its rise sharply. The next level to break through, according to van de Poppe, is $37,600-38,000, as this is the next area of significant liquidity.

Currently, the bitcoin price is trying to crack this resistance level at $38,000. If this area turns into support, another bullish continuation towards the all-time high is likely. Even more, van de Poppe believes it is possible that the next stop thereafter could be $50,000.