Bitcoin prices rose in the past two days (after a 40% plunge last week) as North American miners formed a ‘Council’ to consider green alternatives for mining in a brief meeting with Tesla CEO Elon Musk.
Some traders even raised a concern over the influence Elon Musk has on the cryptocurrency market as the news had an immediate impact on the bitcoin price and it jumped by 12% after the news was released.
Elon Musk tweets and Bitcoin instantly rises by 2000$. This guy has way too much influence and that’s bad for the decentralised world that crypto is creating… pic.twitter.com/v2tt9ACtx4
— Davidescu Vladimir (@v_davidescu) May 24, 2021
So what’s next for Bitcoin?
Bitcoin had a retest of the $36,624 support yesterday and managed to close above it to make it a successful retest, it is often seen in charts after a successful retest of lower support the price action seems to move positively and in an uptrend.
The next resistance is around the $42,130 mark, a level where Bitcoin price has already been rejected off of the same resistance thrice in the recent months.
However, with positive news surrounding Bitcoin from several sources and resulting in a good fundamental narrative, prices may break through the $42,000 resistance and turn it into a stable support area.
Ethereum shows steady rise
Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, showed strength and rising institutional inflows this morning.
Technically speaking, the ETH chart shows more room to grow when compared to the BTC chart as there are fewer resistance levels on their way to the previous all-time high of $4,300.
As the below chart shows, a major resistance level is around the $2,750 mark but with a steady uptrend, it could be broken soon.
One of the positive catalysts was a leaked Goldman Sachs report that stated ETH to be a better store of value than Bitcoin.
“Given the importance of real uses in determining the store of value, ether has a high chance of overtaking bitcoin as a dominant store of value,” said analysts at Goldman Sachs.
They added, “The Ethereum ecosystem supports smart contracts and provides a way to create new applications on its platform.
“Ether beats bitcoin as a store of value. The Ethereum ecosystem…provides developers a way to create new apps. Most of DeFi apps are being built on Ethereum. The greater number of transactions in ether vs bitcoin reflects this dominance” – Goldman Sachs Global Macro Research pic.twitter.com/vNkQ1HlDYM
— SantΞago R Santos (@santiagoroel) May 22, 2021
Ethereum trades at $2,740 at press time.
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