Tesla, SpaceX, Musk All Own Bitcoin – Analysis, 26 July
Last week was full of positive events and news. On Tuesday, July 20, Mastercard announced that it would enhance its card program for cryptocurrency wallets and exchanges. The financial giant will partner with Evolve Bank & Trust, Paxos Trust Company, and Circle to offer a card option to people wanting to spend their digital assets anywhere Mastercard is accepted.
On the same day, Bank of America’s prime brokerage unit launched the clearing and settlement of cryptocurrency exchange-traded products (ETPs) for hedge funds in Europe, according to CoinDesk.
On Thursday, July 22, JPMorgan started offering access to cryptocurrency funds to its retail wealth management clients. The funds the bank has approved include the Grayscale’s Bitcoin Trust, Ethereum Trust, Bitcoin Cash Trust, and Ethereum Classic vehicles, as well as Osprey Funds’ Bitcoin Trust.
On Friday, July 23, Amazon published a job vacancy for a “Digital Currency and Blockchain Product Lead” on their site. According to many crypto enthusiasts, that is an initial signal that the tech giant may integrate cryptocurrency payments.
Also, it is worth mentioning that on Wednesday, July 21, Tesla CEO Elon Musk, Twitter co-founder Jack Dorsey, and Cathie Wood from ARK Invest discussed Bitcoin and cryptocurrency in general at an online conference called “The B Word.” During the discussion, Musk underlined that he remains a Bitcoin hodler. Moreover, he clarified that not only Tesla but SpaceX and he personally also possess Bitcoins. Tesla CEO pointed out that he wants to see Bitcoin succeed:
Moreover, Musk outlined that Tesla may resume payments with Bitcoin.
What is more, it turned out that the Tesla CEO owns not only BTC and DOGE but ETH as well:
The cryptocurrency market reacted to the positive news and events and reverted the price decline. Most of the top cryptocurrencies even recorded a 10% increase on average in the second half of the past week. This liquidated many traders with short positions for almost $1 billion in the last 24 hours:
The positive sentiment is returning to the crypto market. The Monday market starts on a firmer footing. According to Coin360.com, one Bitcoin costs €32,838.02 (+11.14%), one Ethereum – €2,006.30 (+8.44%), one DOGE – €0.1892 (+10.66%), and one UNI – €16.68 (+10.85%):
Source: Coin360.com (Daily crypto market performance)
Now let us analyze the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.
In the weekly chart (1W), BTC/EUR has formed a Bullish Engulfing:
The Technical Analysis theory says that the Bullish Engulfing pattern appears at the bottom of a correction and marks a change of the market sentiment – from bearish to bullish. Many chartists consider this technical formation as a typical trend reversal signal.
In the daily chart (1D), after receiving support in the lower bound of the consolidation from the 360-day Moving Average (MA 360), BTC/EUR has rebounded up to the upper bound of the range:
As can be seen from the chart, the price has surpassed the 30-day Moving Average (MA 30) and is now testing the 90-day Moving Average (MA 90). In our view, if BTC/EUR goes above MA 90, many traders will view this as an additional bullish signal indicating that the uptrend is starting to resume.
In the weekly chart (1W) of Ethereum, a second Bullish Engulfing appeared:
This sequence of bullish candlestick formations hints at diminishing bearish pressure and increasing buying interest. That is why it may turn out that the market sentiment is changing, and the uptrend renewal is just around the corner.
The daily chart (1D) of Ethereum brings another typical trend reversal signal to the table. Namely, a Double Bottom has formed:
It seems that in the weekly and daily time frames, the bulls are trying to regain control of the market. That is precisely the moment when many traders start looking for buy signals.
In the weekly time frame (1W), DOGE/EUR has just interrupted the sequence of bearish candlesticks. Last week a small bullish candlestick formed:
Interestingly, the candlestick for the current week already has a local highly slightly above the previous one – a small signal pointing out the initial change of market sentiment.
Also, in the 4-hour chart (4H), a breakout took place during the weekend. The price of Dogecoin went through the resistance line:
We think that some more aggressive traders will start opening small long positions based on the current breakout on the chart.
In the 4-hour time frame (4H), UNI/EUR is starting to test the resistance line:
For now, we will abstain from entering the market, and we will continue to monitor the price behavior at the descending line. However, if a breakout takes place, followed by a subsequent retest of the resistance line, we will wait for a rebound from this line to open a speculative long position.
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