Bitcoin (BTC) starts the new week with good gains thanks to the support of a well-known source, Elon Musk. Are the good times coming back?

After spending weeks getting closer to $ 30,000, Bitcoin has managed to return safely to indicate an attack on the regular resistance.

If bullish streak indicators flash, there is a chance of a breakout, but analysts and traders are far from 100% sure.

Cointelegraph examines five factors that could affect the development of Bitcoin’s price movement in the next few days.

Musk’s tweet changes the game … again
The city is in talks again this week with Tesla and SpaceX CEO Elon Musk.

He acted as the devil’s lawyer on Twitter on several occasions, and Musk returned to the controversy with news that previously seemed unlikely.

Tesla stopped Bitcoin payments earlier this year shortly after it was announced and did not actually process BTC transactions. According to Musk, this was due to incorrect use of energy in mining.

Musk was widely criticized for his reasoning and influence on bitcoin price movements, and he did not give up, and subsequent tweets about various aspects of bitcoin and altcoins resulted in noticeable but relatively subdued price movements.

Now it seems that the self-proclaimed Technocking has once again changed its approach to social media.

In response to a complaint from Magda Vezhitskaya, CEO of the finance company Sygnia, he reopened the door for Tesla to accept Bitcoin again. Vezhitskaya’s critique of Musk’s influence on Bitcoin was covered by the Cointelegraph last week.

“Once there is confirmation of smart use of clean energy (~ 50%) by miners with a positive trend in the future, Tesla will continue to work with bitcoin,” Musk replied, adding that Tesla still had 90% of the original 1 , 5 billion. buy. dollars. from BTC.

The news was liked by the BTC / USD pair, which at the time of writing has exceeded $ 39,000 with a daily gain of over 12%.

Indicators create an ambiguous narrative.
As Cointelegraph reported over the weekend, the bullish case is confirmed by several indicators on the chain.

Cover price versus active addresses, SOPRs, stock flows and analytical tools strongly indicate that Bitcoin is undervalued at current prices.

So short-term and medium-term profit forecasts are popping up – some are asking for $ 85,000 in the coming months, while the stock-to-power model still thinks $ 100,000 is reasonable this year.

Meanwhile, there are two plans to consider on Monday, one of which is a less frequent visitor than the other.

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As PlanB notes, among other things, Bitcoin’s mempool experienced a major setback this month, which means that transactions are currently very cheap compared to expected processing times.

Not only is this a “great time” to reorganize and consolidate BTC wallets, but as Cane Island Alternative Advisors Investment Director Timothy Peterson says, the meme pool is back where it was before Bitcoin launched its parabolic rally in late 2020.

He summed up in a thread of tweets Sunday: “Bitcoin mempool is a good indicator of bubbles.”

mempool is where pending transactions are waiting to be processed before being added to the blockchain. This week it was scanned for the first time since November 2020 (before the bubble). ”

Graph of average mempool volume in bitcoins over 7 days Source: Blockchain.com
He further warned that the lack of demand, reflected in the empty memory movement, means that the price movement “should” have a tendency to decline in the coming months.

Meanwhile, the lack of demand on the stock exchanges became noticeable. As explained by the CryptoQuant resource for monitoring in the chain, inflows and outflows from stock exchanges are greatly reduced.

The $ 40K fight continues
Traders who wake up on Monday will be interested in one level, thanks in part to the latest Bitcoin release.

After waiting for a decisive move for several weeks in price pressure, there is now a real chance that they will see a $ 40K attack and possibly higher.

That would be important in itself – it is widely estimated that prices will fall in the short term before a recovery takes place, but Bitcoin refuses to merge for now.

“I have to gather again before I can expect any correction,” said popular trader Crypto Ed on Monday morning.

“At the moment, I only see day trading based on a low TF.”
He added that he would wait until the lows were reached before opening an opportunity, but in the meantime the BTC / USD pair could reach $ 47,000.

Source: CoinTelegraph

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