Bitcoin (CCC:BTC-USD) has been stuck in neutral for a month on concerns about enterprise adoptions, pollution surrounding mining and legal crackdowns on crypto in China. However, BTC’s price recently broke out of its limited range when it broke $40 thousand today.]
The big question for investors had been whether this sideways consolidation would end with a breakout, or a breakdown. And now it looks like it’ll be the former.
Bitcoin broke $40 thousand this morning, and the largest impetus seems to be Elon Musk confirming Tesla (NASDAQ:TSLA) will accept Bitcoin again, as soon as green energy usage powers a “reasonable” amount of BTC mining.
Remember, Elon turning his back on cryptos and saying Tesla would stop accepting payment in BTC is what killed the bull market initially. It makes complete sense that Elon’s explicit spelling out of Tesla’s terms for re-acceptance of BTC propelled it above its previous threshold. The bull market is coming back to life.
Whales Don’t Care About Elon’s Bitcoin Tweets
Also important to note is that, between Elon cancelling BTC payments for Tesla and his recent statement, Bitcoin whales have been acquiring non-stop.
In fact, Bitcoin whales have accumulated over $2 billion worth of Bitcoin since Bitcoin’s Elon-inspired drop below $40 thousand. That’s roughly 50,000 BTC that found its way into the wallets of larger holders over the course of a few months.
So these large whale accounts now hold more Bitcoin now than they have since March 14th.
So, when negative crypto news hits, small money starts to sell. But big money is buying non-stop. That’s bullish.
It’s time to look for a big breakout in BTC now. With the $40 thousand level broken and the consolidation over, near-term momentum could push the price to $50 thousand or higher.
Altcoins could rally even more than this, considering they’re just levered plays on Bitcoin.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.