Crypto Industry News:
Tesla CEO Elon Musk believes that Bitcoin is not as good for daily payments as the meme-based cryptocurrency Dogecoin.
Musk compared the world's largest cryptocurrency to DOGE in an interview with Time Magazine, shortly after the publication named him the Man of the Year 2021.
"Bitcoin is not a good substitute for a trading currency. Even though it was conceived as a silly joke, Dogecoin is better suited for transactions. The total transaction flow you make with Dogecoin, like your daily transactions, has a much higher potential than Bitcoin," Musk said.
Tesla CEO stressed that Bitcoin is more suitable as a custodian, so investors prefer to hold it rather than sell it or use it for payment. "Bitcoin transaction volume is low and transaction cost is high," noted Musk.
On the other hand, Dogecoin is not as good as a means of storing value, Musk noted, noting that the cryptocurrency is "slightly inflationary". However, this "encourages people to spend money, not hoard it," he said.
Technical Market Outlook
The BTC/USD pair has made a new local low at the level of $45, 560 as the price is getting away from the 61% Fibonacci retracement level. After the short period of local consolidation, the bulls attempt to bounce again, but so far they hit only the level of $48,707. The nearest technical resistance is located at the level of $51,913 (Pin Bar high) and $53,333. The momentum is currently hovering just below the level of fifty on the RSI (14) indicator. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up and only a clear and sustained breakout below the wave C low at $41,678 would change the outlook to bearish again.
Weekly Pivot Points:
WR3 - $56,908
WR2 - $54,309
WR1 - $52,119
Weekly Pivot - $49,669
WS1 - $47,511
WS2 - $44,768
WS3 - $42,652
Trading Outlook:
The ABCxABCxABC complex corrective cycle might be terminated at the level of $41,678 and the market is ready to continue the up trend. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).
