- Summary:
- Elon Musk's tweet allows for a brief upside recovery on the BTC/USD pair, but this rise in Bitcoin prices lacks momentum.
Tesla CEO Elon Musk has tweeted that Tesla would accept Bitcoin payments once more if the miners adopt 50% renewable energy in their work. This tweet allowed Bitcoin prices to experience the second day of gains, adding 4.08% on the day as of the time of writing.
The tweet comes as Bitcoin mining hash rates drop to a 5-month low, following the Chinese government’s crackdown on crypto mining and transactions. The latest drop was a very steep one, with Cryptopotato reporting a drop of 20% in the last month alone. However, things may be looking up for Bitcoin prices after the proposed Taproot upgrade got the 90% backing it needed from miners over the weekend. The last upgrade to the network was the Segwit upgrade of 2017.
Technical Outlook for BTC/USD
Bitcoin price action has broken out of the falling wedge pattern and appears headed to the resistance wall, which has the 40751 price mark as the floor. A break of this price wall allows BTC/USD to aim for 43569, with 46203 and 48,000 forming additional targets to the north.
On the other hand, a breakdown of the immediate support at 37455 brings 35297 into the picture. This price level, along with 32000 and 30208, serves as the intervening price support levels before the 4 January low at 28000.
BTC/USD Daily Chart
