Crypto Market Update- Feb 1, 2021- DOGE Days & Elon's Support of Bitcoin

Crypto Markets Trading Up generally on the back of Redditors push for a DOGE and XRP Pump, Elon Musk adding BTC icon to his Twitter Account. This week saw the price of dogecoin (DOGE) at one stage surge tenfold (up 500% at time of writing), briefly pushing the cryptocurrency into the list of top 10 crypto assets by market capitalization. DOGE doesn’t do anything special. It has a cute dog as its logo. Its founder disavowed the project ages ago. Some people have hyped it as a joke which then became part of its narrative – in other words, its unpretentious lack of fundamentals has become part of its value. We may deride people who put savings into a purely sentiment-driven asset – but that sentiment has kept DOGE alive for over six years now, and has attracted a smattering of high-profile followers.

Elon Musk has clarified that he is a bitcoin supporter, if a bit “late to the party.”

Talking on invitation-only audio-chat app Clubhouse on Monday, Musk said, “I should have bought [bitcoin] eight years ago … I do at this point think bitcoin is a good thing. I am a supporter.”

The Tesla CEO further said bitcoin, the top cryptocurrency by market cap, is “on the verge of getting broad acceptance by conventional finance people.” He added that he did not have a “strong opinion on other cryptocurrencies.”

Musk did address popular meme-friendly cryptocurrency dogecoin, saying he occasionally makes jokes about the coin. While dogecoin is “made as a joke,” he said, it would be the most “entertaining and ironic outcome,” if DOGE became the “currency of [E]arth in the future.”

“Fate loves irony,” he said.

In the past, Musk has sometimes teased the crypto community by name-dropping bitcoin and dogecoin, but never clarified if he is a supporter any cryptocurrency.

The new comments come several days after Musk changed his Twitter bio to read “Bitcoin,” prompting a 15% rise in the price of the cryptocurrency. The sudden rise also caused the liquidation of $387 million worth of bitcoin short positions.

Bitcoin was up as high as $38K over the weekend.

Now trading at a critical level following Sunday’s monthly close at $33,100 as it takes aim at the $35,000 level of resistance.

The world’s largest cryptocurrency remained relatively stagnant over the weekend as it tested $32,200 to the downside before bouncing back above $33,000.

The monthly close demonstrates a period of indecision among traders with a large wick to the upside that draws similarities with the monthly candle in December 2017.

This is indicative of a reversal candle, although the fact that the monthly closed above the bollinger bands presents a bullish case moving in to February.

Price action this month will be dictated by a number of key news events, with Ethereum’s listing on CME being considered a bearish event while there will also be a resolution to Tether’s lawsuit with the NYAG.

A positive result for Tether would put to bed many of the fears that caused indecision throughout January, although a negative outcome would almost certainly drive price below the $30,000 level of support.

The psychological level at $30,000 has become more and more important over the past few weeks, with a number of wicks below it despite no candle closures.

If Bitcoin begins to close anything above a four-hour candle below $30,000, downside price targets would begin to emerge at both $27,000 and $24,000.

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