The richest man in the world, Elon Musk, raises Bitcoin price by 20% – is $ 40,000 at stake again?

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Bitcoin (BTC) corrected from the high of $ 42,000. However, this correction may have ended as a significant momentum shift has occurred in the past few days.

The GameStop debacle raised many questions about trustworthiness and exchanges between large parties. After that, more and more people claimed that decentralization was the future.

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Among those people is Elon Musk, who, according to Forbes, is worth nearly $ 183 billion, making him the richest person in the world. The Tesla CEO added #Bitcoin to his Twitter profile and also wrote “in retrospect it was inevitable”. A very cryptic message to his 44 million followers that some interpret as Musk investing in Bitcoin.

However, that tweet and profile change by Elon Musk resulted in a new rally on Jan. 29, with the price rising from $ 32,500 to $ 38,000 in a matter of minutes. The main questions now are: does this mean the bull market will persist and BTC will make new all-time highs?

Bitcoin holds a key level of $ 30,000

XBT / USD 2 hour chart. Source: TradingView

The 2-hour chart shows a clear uptrend after holding the significant support zone at USD 30,000.

The key factor in the continuation of the uptrend has been the support at $ 30,000 which has happened in the past few days. Since then, the next move for a bullish continuation would be a breakout above the USD 34,000 resistance zone.

As the graph shows, and thanks largely to Elon Musk’s tweet, the outbreak was confirmed and Bitcoin began to accelerate sharply. The next level to break is at $ 37,600 to $ 38,000 as this is the next area with significant liquidity.

Currently, the price of Bitcoin is trying to crack this resistance level at $ 38,000. If this area is tilted for support, another bullish continuation towards the all-time highs is likely to occur and $ 50,000 comes into play.

Total market capitalization hits a new all-time high

Total market capitalization for cryptocurrencies 1-week candle chart. Source: TradingView

Total cryptocurrency market cap has hit new highs in the past 24 hours, accelerating to the $ 1.13 billion level.

However, Bitcoin’s total market capitalization and price are still far from the 21-week MA. In this 21-week MA, a support test is often done before continuing the ascent.

Hence, the levels observed for total market capitalization are still the same as before. If the market can’t continue to rise from here, the focus will be on $ 730 billion as it would allow for a perfect support / resistance flip from the previous all-time high.

BTC / USD 1 week chart. Source: TradingView

The weekly chart is showing an obvious uptrend and a large gap between the 21-week MA and the current price. These two often come back on each other to bring the markets back to the “mean” of price action.