Tesla jumps on Bitcoin bandwagon, how is the crypto currency looking on charts?

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 Tesla jumps on Bitcoin bandwagon, how is the crypto currency looking on charts?

A big shot in the arm for Bitcoin bulls, the world’s biggest automobile company, by market cap, Tesla has invested USD 1.5 billion in Bitcoin.

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The twitter discussion between Michael J. Saylor (Co-Founder MicroStrategy) and the Tesla founder Elon Musk has fructified in Tesla finally making a large move towards the cryptocurrency space.

Elon Musk had recently inquired about large Bitcoin transactions with Michael J. Saylor in a series of Tweet. During the tweet exchange, the Bitcoin enthusiast ended up suggesting Elon Musk to transfer his company’s balance sheet from dollars to Bitcoins for doing the ‘shareholders a USD 100 billion favour’.

To Know More, Do Read: Bitcoin in 2020 - A Year of Low Interest Rate, Quantitative Easing, And Economic Drop-Off

Many prominent names have entered the digital currency space. For example, Twitter CEO Jack Dorsey. Last year in the month of October Square, a payment fintech company founded by Jack Dorsey, had announced that it had invested in Bitcoin.

Apart from prominent names, such as Michael J Saylor, Jack Dorsey, Paul Tudor, many businesses have also come forward and are now accepting the digital currency as a valid token for financial transaction. The result of positive news flowing in favour of Bitcoin led to as a cumulative effect leading to a massive bull rally in Bitcoin prices.

Also Read: Bitcoin At an All-Time High Outperforming All Asset Classes, Why are investors Gung-ho?

One of the most important price triggers for Bitcoin has been the acceptance of the currency by PayPal, which previously decided to integrate its wallet for the digital currency transaction.

Apart from that a continuous purchase by big funds such as MicroStrategy, which recently added another USD 650 million worth of Bitcoin, taking the total investment in the digital currency to USD 1.125 billion.

The recent investment by Tesla has triggered a breakout in the currency.

To Know More, Do Read: Hedge Funds to Hollywood Celebrities Fancy Bitcoin

BTC Daily Price Chart (Image Source: Refinitiv Eikon Thomson Reuters)

Bitcoin prices have now reached a new record high of USD 44,510.89 (as on 9 February 2021), and on following the daily chart, it could be seen that the currency has now given a breakout of the previous resistance level surpassing the previous record high.

  • Also, the currency has given a breakout from a wedge like formation after showing a breakdown of a symmetrical triangle. However, the bears were unable to pull the currency down after the breakdown, and bulls once again dominated to keep the Bitcoin prices buoyant.
  • At present, BTC has given a volatility breakout with prices crossing the +2 Standard Deviation of the 20-day simple Bollinger Band®, thanks to the Tesla trigger.
  • The ability of the currency to sustain this breakout would further propel bullish sentiments ahead.

The upper line of the wedge-like pattern is the primary support for the currency, followed by a major support around the previous high at USD 42,100.00.

Also, the recent rush in prices is getting good support from large volumes, which could confirmed the upward sloping On Balance Volume (OBV) indicator which is in tandem with the price action.


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