On Monday, June 14, Bitcoin reached a two-week high of $40,000. This is following Tesla CEO Elon Musk’s tweet that it will now resume transactions using the digital currency.
In February, the company announced that it would purchase $1.5 billion BTC and will take it as payment.
Since then, bitcoin has revolved over Musk’s views for months.
Later on, the Tesla CEO stated that they would not accept the cryptocurrency anymore since mining requires a huge amount of energy which contributes to climate change.
On Sunday, Musk tweeted that the electric car maker will again accept bitcoin when there is proof of logical, clean energy usage by miners with a positive future trend.
After that message, the cryptocurrency smashed more than 9%, which broke its 20-day moving average.
Also, it rose a tiny bit further in Asia, hitting $39,838.92.
An analyst stated that the market was also backed up by software firms and major bitcoin-backer MicroStrategy, which is raising half a billion dollars to buy the digital currency.
This year, bitcoin spiked by about 33%. However, it plummeted from a record peak of over $60,000 amid a regulatory crackdown in China.
Also, Musk apparently fluctuated the eagerness for it.
Since the company’s bitcoin purchase, Tesla stock collapsed by an estimated 30%.
Back in May, the CEO tweeted that it won’t be selling any bitcoin anymore, but investors are fiercely waiting for the firm’s next earnings update, which is due next month.
The holdback is for any disclosure of any alteration to its position.
After the weekend gains, other cryptocurrencies were flat with ether at $2,491 and dogecoin at 32 US cents.
Bulls favored Technical Analysis
On Sunday, bitcoin entered a turn of events as the price broke out at $39,252. The technical analysis favored these kinds of bulls.
However, a lot of analysts remain hedged in identifying whether the digital asset is set to move toward its uptrend.
For the past two months, there has been a 50% decrease in price that may seem extreme to those unfamiliar with the volatility of the crypto market.
Even so, this is not surprising to long-term holders who experienced multiple drawdowns over the last decade.
An analyst stated that a drawdown of 70% or more is not unusual for bitcoin, most especially after a significant spike in price.
This hints that the probability of further pain remains a threat as bull war stays in the mid $30,000 range.
The swiftly plunging of prices sent new and old BTC holders running for the sidelines.
An analyst noted that this resulted in traders selling at a loss.