By Samuel Indyk
Investing.com – The price of Bitcoin was within a whisker of $40,000 on Monday (NASDAQ: MNDY ) morning after Tesla (NASDAQ: TSLA ) CEO Elon Musk tweeted about the world’s largest cryptocurrency on Sunday.
Replying to a tweet suggesting he was manipulating the price, Elon Musk said, “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
The comment lifted the price of Bitcoin , which had traded as much as 50% below its all-time high towards the end of last week.
After hitting a high of near $65,000 in April, Bitcoin tumbled after Musk announced that Tesla would stop accepting Bitcoin as payment for vehicles, citing the environmental impact of mining and transactions. And the price has remained in a range between $30,000 and $40,000 since late May.
Although the price of Bitcoin is higher by around 12%, the comments do not tend to add too much new information to what Musk has previously said.
At the time Tesla announced they would stop accepting Bitcoin, Musk still said he was still a believer in cryptocurrencies and confirmed that the electric vehicle company intended to use its Bitcoin holdings for transactions as soon as mining transitions to more sustainable energy.
However, these latest comments have not only lifted the price of Bitcoin but most other major cryptocurrencies too.
From a technical standpoint, bulls will be hoping a break of $40,000 to the upside could trigger another move higher.
“The charts suggest consolidation followed by a rally through $41,000.00 targets further gains to around $44,000.00,” said Jeffrey Halley, Senior Market Analyst at OANDA.
On the other hand, if the $40,000 resistance holds then further price weakness could be observed with markets keeping an eye on the convergence of the 50DMA and 200DMA, which if they cross, would signal a death cross formation.
At 08:57BST, Bitcoin was trading at $39,500, up 12% in the last 24 hours.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.