Elon Musk inquired about “large” bitcoin transactions during a Sunday Twitter exchange with cryptocurrency booster Michael Saylor, the founder and CEO of MicroStrategy.
The back-and-forth kicked off when the Tesla CEO tweeted a racy meme suggesting he’s “trying to live a normal productive life,” but is being tempted by the coin, which has gained more than 220% year-to-date.
Saylor responded by suggesting Musk should do his shareholders a “$100 billion favor” and convert the Tesla balance sheet from US dollars to bitcoin. Saylor then upped the stakes when assessing how the move could impact other major corporations.
“Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor,” Saylor added.
Musk responded with a question: “Are such large transactions even possible?”
Saylor said they are, and explained he’s purchased over $1.3 billion in bitcoin in the past months and he’s “happy to share” his playbook with Musk offline.
The Twitter exchange followed a week of new records for bitcoin. The cryptocurrency crossed $20,000 for the first time ever last Wednesday, and briefly soared over $24,000 over the weekend.
Musk tweeted mixed messages about bitcoin to his 40 million followers on Sunday. Before the exchange with Saylor, he tweeted “Bitcoin is my safe word,” but then followed up by saying, “Just kidding, who needs a safe word anyway!?”
Following the Saylor conversation, Musk tweeted: “Bitcoin is almost as bs as fiat money,” and then suggested to his followers he’s a fan of Dogecoin, a parody cryptocurrency.
“One word: Doge,” Musk tweeted. The billionaire’s Twitter bio now reads: “Former CEO of Dogecoin.”
Shares of Dogecoin shot up nearly 20% after Musk’s tweet.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 18,440.18.
The projected upper bound is: 25,049.59.
The projected lower bound is: 21,035.13.
The projected closing price is: 23,042.36.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 65.6413. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 72.95. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 26 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -286.900 at 22,857.570. Volume was 51% below average (consolidating) and Bollinger Bands were 136% wider than normal.
Open High Low Close Volume 23,135.000 23,239.500 22,435.980 22,857.570 306,993
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 21,543.54 18,245.82 12,600.33 Volatility: 72 71 52 Volume: 813,858 806,954 647,826
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 81.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BTC= and have had this outlook for the last 6 periods. Our momentum oscillator is currently indicating that BTC= is currently in an overbought condition.