Bitcoin Rallies as Tesla Takes Bullish Stance

One of the most tried and true indicators in the world of crypto comes from a surprising source: Elon Musk’s twitter. When he tweets about an asset, whether it be Bitcoin or Dogecoin, it always results in unexpected price action. So it really is no surprise following the massive spike in price we saw this morning with $BTC/USD.

Bitcoin rallied to 44k following the news on twitter that under their new policy, Tesla would begin acquiring Bitcoin as a long term holding and will eventually accept Bitcoin as payment for their products.

TESLA 10-K: “.. we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future ..”

2020 was defined by the role institutions played in the Bitcoin market, and it is very bullish to see this momentum continue into the new year. The retail market is trading this news and we are seeing levels of volume we have not seen since the last run-up. Bitcoin was in the midst of a short term reversal when this news came, and it mitigated all technically important levels. We are not forming much support on the way up because of the rapid nature of the bullish price action, but the significance of this event may allow price to continue to run up to 50k before we get a correction.