Bitcoin breaks through the $40k resistance for the first time since May 21. This may end a nervous period for cryptocurrency bulls as BTCUSD has approached the $30k support several times recently.
It seems that the adoption rate news has taken over the concerns about the environmental issues and regulatory crackdown in China, the US, and some European countries. The Miami Bitcoin conference with its flagship promotion stint, including the El Salvador president’s decision of making BTC a legal tender in his country, didn’t manage to convince buyers even when the promise was fulfilled by the parliament.
Elon Musk had to come to the rescue again. On Twitter, he declared Tesla would allow Bitcoin purchases again.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.
When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.
— Elon Musk (@elonmusk) June 13, 2021
This proved to be enough to push BTCUSD over the limit.
Ethereum took a sharp drop in May and entered a sideways drift since then. The second-largest cryptocurrency stayed low, while Bitcoin maximalists pushed for wider adoption provoking a response from national regulators and International Monetary Fund. Elon’s Twitter effect may come to altcoins with some delay, though.
Today ETHUSD climbed over the $2,500 resistance but still is showing a downtrend over the last two weeks.
One thing is sure, we are going to see some exciting price moves on all cryptocurrencies this week. There are some critical support and resistance levels that are going to keep the prices in a certain channel, but each time they are broken, you should expect a steep price change.