BTC/USD, DXY (US Dollar Index): Technical Outlook, Edition #12 (04/06/21)
We all know a certain billionaire is unpredictable but is he a friend or foe to Bitcoin? Let's examine Elon Musk's post-Tweet carnage in this edition
A nasty fake-out (false breakout) cut Bitcoin's anticipated organic breakout short today, leaving the bulls frustrated for several reasons - namely, one culprit, Elon Musk.
Is he friend or foe?
The billionaire cannot help himself, literally. His antics have shaken the cryptocurrency market a few times now, using Twitter as an Excalibur to keep investor perspectives divided.
Dogecoin-ers adore him as the exalted leader of his future Mars Economy. In contrast, Bitcoin-ers are probably rolling their eyes and wondering when the SEC (Securities Exchange Commission) will step in... again.
Today was no different, as he tweeted a very convoluted and misleading meme regarding a break-up with Bitcoin, only then to share another meme suggesting how much he missed it.
Either Elon regrets Tesla reducing their treasury exposures to Bitcoin and accepting the digital asset as a form of payment, or he is simply bored and likes rattling the metaphorical cage to an unregulated market.
Now that we've addressed the FUD (Fear, Uncertainty, and Doubt).
Let us dive into the analysis.
The false break out can be seen as Bitcoin rallies above resistance and up to USD 39K before failing the re-test and dumping back inside the pennant.
Should the support of this symmetrical triangle-like pennant hold once more, then the bulls have been gifted with another great buying opportunity.
Conversely, another revisit of the former USD 30K lows is likely if BTC/USD breaks down.
It is also worth mentioning a potential double-bottom reversal forming on the $DXY (USD strength), which inversely correlates (negatively related) to most other assets.
Certainly, an exciting yet peculiar time to be involved with the markets...
See you again for the next update.
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