Elon Musk’s Comments Help Bitcoin (BTC) and Ethereum (ETH) Rally, But Key Resistance Still Intact

Tesla chief and billionaire Elon Musk weighed in on Bitcoin speaking at the B-word conference on Wednesday, July 21. Musk’s positive commentary on Bitcoin (BTC) and his declaration of holding Ethereum (ETH) served as a booster shot to the two largest crypto assets.

Bitcoin (BTC) is up 7.74% at press time trading at $32,034 with a market cap of $601 billion. At the same, Ethereum (ETH) has shot up 12% and is trading at $1987 at press time.

On Wednesday, Elon Musk said that Tesla would start offering Bitcoin payments once sufficient renewable energy targets are met.

“It looks like bitcoin is shifting a lot more toward renewables and a bunch of the heavy-duty coal plants that were being used…have been shut down, especially in China.

I want to do a little more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend toward increasing that number. If so, Tesla will most likely resume accepting bitcoin”.

Wait Before Buying and BTC and ETH

Musk’s comments have helped alleviate part of panic selling triggered earlier this week in the crypto market. However, it will be too early to make any fresh entry into the market. Bitcoin (BTC) is still facing strong resistance at $32,000. Any break above it could possibly trigger the northward momentum. Speaking to Bloomberg, Steen Jakobsen, chief investment officer at Saxo Bank said:

“Bitcoin and Ethereum did manage to pull a rally together after Bitcoin had dropped down through the key $30,000 area yesterday, but really needs to recover above $32,000 sustainably to dig itself out of a hole”.

Naeem Aslam, chief market analyst with Ava Trade Ltd. also noted that Bitcoin can still test $25,000 in the coming weeks. As Coingape reported, only a move above the 50-DMA i.e. $34,500 will confirm the long-term uptrend. On the other hand, Ethereum (ETH) is facing strong resistance at $2000 as it has been consolidating for long around $1900 levels.