Elon Musk’s Tweet Sparks Another $40K Rejection — What’s Next for Bitcoin Price?

By ssaurel | In Bitcoin We Trust | 4 Jun 2021

After several days of consolidation around the $36K mark, Bitcoin was on its way back to attacking the $40K resistance on June 3, 2021. This is the moment that Elon Musk chose to blow cold again. It seems he likes to alternate between hot and cold to see if his power to influence the Bitcoin market is still intact.

While he seemed to change his attitude on Bitcoin by being constructive again last week, this time Elon Musk implied in a tweet that his love affair with Bitcoin was over:

Elon Musk Tweet

After such a tweet, everyone started to imagine that Tesla had sold the rest of its Bitcoin and that Elon Musk might announce this in the wake of it. And then as is often the case with Elon Musk, nothing more.

It did, however, cost a rejection around the $40K mark for Bitcoin price.

Elon Musk acts like a child who wants attention

Successfully breaking through the $40K resistance would have been great short-term news for the Bitcoin price. We would have been able to get back into the uptrend that only a May full of FUD (Fear, Uncertainty, and Doubt) messages had managed to temporarily destroy.

In a matter of minutes, the price of Bitcoin fell by more than $3K to below $37K.

Proof if any were needed that Elon Musk's influence on the Bitcoin market is decreasing. Before the May 2021 episode, such a tweet from Elon Musk would probably have caused a bigger drop in the price of Bitcoin. More and more investors are realizing that Elon Musk's tweets should not be given any importance.

I quickly shared my sentiment on Twitter:

Sylvain Saurel Tweet

To me, Elon Musk is like a child desperate for public attention. The Bitcoin world was moving on after the FUD of May 2021. So Elon Musk wanted to bring the spotlight back on himself. To do this, all means are good.

If you want to take full advantage of the Bitcoin revolution in the coming years, the best thing to do is to pay little attention to Elon Musk's tweets. Having over 55 million followers doesn't necessarily make you a credible person on Bitcoin. This is an important lesson to learn.

The big question is how the price of Bitcoin will rebound from the $40K rejection

Now that the price of Bitcoin has fallen back to around $36.5K, the big question on everyone's mind is the same as after every Elon Musk tweet: What's next for Bitcoin price?

I quickly looked at the Bitcoin price chart to do some technical analysis:

Bitcoin Price Technical Analysis by Sylvain Saurel

To continue the return to an uptrend wave that began in early June 2021, the price of Bitcoin will have to hold the support area around $36K - $36.5K. If this support were to be broken, we would probably test the support around $33.5K - $34K again.

This would probably plunge Bitcoin a little longer into the boredom phase that followed the Bitcoin price crash on May 19, 2021.

The $36K - $36.5K support must be held for Bitcoin to attack $40K again

If the support around $36K - $36.5k is held, the Bitcoin price would head back towards $40K to retest this resistance that needs to be breached to prevent the stagnation phase between $36K and $40K from lasting too long.

Beyond $40K, it is towards $42K that Bitcoin would test a new resistance. A resistance that had been the scene of a strong rejection in the days following the May 19, 2021 crash.

The key area in the medium term is clearly the $42K area. If Bitcoin were to break through it, then we would probably quickly move back towards $46K. The Elon Musk episode would be behind us with the price of Bitcoin once again ready to attack $50K.

We're not there yet of course, but that's what we should be watching in the coming days. We will also have to be wary of Elon Musk's tweets, who seems to take great pleasure in attacking Bitcoin every time it gets close to that crucial area around $40K again.

Final Thoughts

Given Bitcoin's still excellent fundamentals, the current price of Bitcoin is still a great opportunity for those who believe in its revolution and still have cash on hand. For the others, they should continue to HODL Bitcoin no matter what. This is a strategy that has proven effective in past years.

This period of uncertainty will end with an exit from the top. The goal of $100K by the end of 2021 will still be in sight. This is my conviction.

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ssaurel Verified Member

Entrepreneur / Developer / Blogger / Author.

In Bitcoin We Trust
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In Bitcoin We Trust is a place where Bitcoin believers share their ideas about the upcoming revolution. Blockchain and cryptocurrencies are also covered in this publication.

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