Bitcoin, which had dropped below $30,000 on Tuesday, had risen 6.4% to $31,696.39 on Wednesday, when Elon Musk had spoken, while ethereum gained 8.8% to $1,941.61, and momentarily above the $2,000 mark.
After Wednesday’s almost 10 percent increase, Bitcoin has apparently regained its footing and may test the top end of its trading range of $30,000 to $40,000 over the next few weeks.
Bitcoin’s Bullish Defense
On Wednesday, when the price of Bitcoin reached $32,000, Wednesday’s bullish price increase took out the bearish breakdown.
On the daily chart, the prolonged defense of the $30,000 level has assumed the form of a so-called triple bottom pattern, which also indicates a positive divergence of the relative strength index (RSI). When the indicator prints higher lows in contrast to price weakening, it is an indication of seller fatigue and the potential for a price rebound.
Elon Musk Clarifies His Thoughts on Bitcoin
When billionaire tech entrepreneur Elon Musk stated Wednesday that he had no interest in lowering the price of bitcoin, investors rejoiced. In addition, he revealed that he owned Ethereum along with Dogecoin. The energy mogul stated:
“If the price of bitcoin goes down, I lose money. I might pump but I don’t dump.”
Elon Musk, Tesla’s CEO, says the company may use additional renewable energy sources to virtually generate cryptocurrency again.
Beyond his frequent claims that he has cryptocurrencies such as bitcoin and dogecoin, Musk recently said that he has ethereum, stating that Tesla and SpaceX solely possess bitcoin.
JP Morgan’s Mixed Feelings
Not all institutional figures are particularly bullish on Bitcoin, included banking giant JP Morgan.
The bank is searching for signs that the worst of bitcoin’s price drop is over, but it needs to see bitcoin’s value share of the total cryptocurrency market climb to above 50% to claim that the bear market is finished.
Bitcoin’s market capitalization as a percentage of the whole cryptocurrency market reached around 70% early this year. According to the bank, it is presently at about 46%. The continuous unwinding of positions by momentum traders isn’t benefiting bitcoin, according to the bank.
It should be noted that JP Morgan is now allowing institutional clients to access the bank’s crypto products. These include Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust, Ethereum Classic products, and Osprey Funds’ Bitcoin Trust. According to an internal letter acquired by Business Insider, the policy change took effect on July 19.