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Bitcoin Friday: Musk sends Bitcoin under $ 50,000.

This week was very turbulent on the cryptocurrency market which led to a significant move in a single direction. As I mentioned in previous analyzes, I did not see much room for growth at BTC and the recent market movements had confirmed that notion.

This week, the crypto world was shaken by the information that TESLA will stop accepting Bitcoin for its vehicles due to the complexity of mining. How did it affect the charts?

Weekly chart

On the weekly chart, the weekly MA21 has been tested since 21.09.2020. This moving average was absolutely crucial for the entire bull market in 2016 and 2017. Bitcoin always tested it as it grew, but had never broken it downwards. Now, however, it has been an unusually long time since Bitcoin has tested the moving average during its continuous growth. It did not happen until this week. Now it is absolutely crucial for Bitcoin to not close the weekly candle under this MA, which is worth $ 47,670 .

Technical analysis of Bitcoin on a weekly chart Figure 1: Technical analysis of Bitcoin on a weekly chart

Daily chart

It was E. Musk’s tweet that caused Bitcoin to fall through the trend line. In addition to the weekly MA21, I have drawn a support line on the daily chart at the level of $ 46,429 , which would fit perfectly with this MA. In addition, I have a more pessimistic scenario here, and that is testing the level of $ 41,627 – $ 43,137 .

However, we can temporarily reach these levels with a wick, but we should not close the weekly candle on these levels. That would be very bad for further development.

4H chart

On the 4H chart, we basically see the same price development as on the daily chart. It will be absolutely crucial how we will close this week. This will tell us a lot about the strength of Bitcoin in the following few days.

Technical analysis of Bitcoin on a 4H chart Figure 2: Technical analysis of Bitcoin on a 4H chart

Conclusion

As I said in previous analyzes, Bitcoin already needed a correction. When it seemed that there was no correction in sight, E. Musk stepped in and helped it with his tweet. In the following days, however, It will all depend on the weekly candles and whether we can maintain weekly MA21.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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