Bitcoin Moves Higher At The Start Of The Week
Bitcoin gained additional upside momentum and moved closer to the key resistance level at $40,000 after Elon Musk stated that Tesla would allow customers to use Bitcoin as payment for the company’s cars after Bitcoin miners’ usage of clean energy increases to 50%.
Musk also added that Tesla sold just about 10% of its Bitcoin holdings, which served as an additional bullish catalyst as some traders were worried that Tesla was decreasing its position in Bitcoin.
The second largest cryptocurrency, Ethereum, is also moving higher. Currently, it is trying to settle above the $2,500 level. Dogecoin is mostly flat, and it looks that Bitcoin’s recent upside move was not bullish for all cryptocurrencies.
In fact, Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, is currently trying to settle above the 20 EMA at 45.75%. A move above this level will indicate that interest in Bitcoin is rising.
Bitcoin managed to get back above the 20 EMA near $38,000 and is trying to settle above the key resistance level at $40,000. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If Bitcoin manages to settle above the key resistance at $40,000, it will head towards the next resistance level which is located near the 50 EMA at $42,000. A successful test of the resistance at the 50 EMA will open the way to the test of the next resistance at $44,000. In case Bitcoin gets above $44,000, it will head towards the resistance level which is located at $46,000.
On the support side, the previous resistance level at the 20 EMA near $38,000 will serve as the first support level for Bitcoin. A successful test of the support at the 20 EMA will push Bitcoin towards the next support level at $37,000. If Bitcoin settles below this level, it will head towards the next support at $35,000.
For a look at all of today’s economic events, check out our economic calendar.