Bitcoin rises 10% as Elon Musk, Jack Dorsey, and Cathie Wood gather to discuss the volatile cryptocurrency
Bitcoinjumped as much as 10% on Wednesday as Elon Musk, Cathie Wood, and Jack Dorsey talked cryptoat The B Word conference.
- Musk, Wood, and Dorsey all advocated for the cryptocurrency and talked about its future potential.
- Bitcoin reclaimed the key support level of $30,000 and traded as high as $32,415 on Wednesday.
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Musk, Dorsey, and Wood answered a series of questions on cryptocurrencies and addressed a number of pain points associated with bitcoin, including its extreme volatility, intense energy usage, and reliance on fossil fuels and sustainable energy.
The surge higher in bitcoin helped the popular cryptocurrency reclaim a key technical support level at $30,000. As of Wednesday afternoon, bitcoin traded as high as $32,820, well above its Tuesday low of $29,308.
Many technical analysts view bitcoin's $30,000 level as a make or break level for the cryptocurrency that could lead to significant downside if it doesn't hold.
Katie Stockton of Fairlead Strategies said in a note on Wednesday that since the $30,000 level is heavily watched by traders, it is prone to a shakeout below that level, also known as a false breakdown. A false breakdown often traps bears below a key support level before surging higher.
So far, that playbook is playing out, with bitcoin breaking the $30,000 level on Tuesday before surging significantly higher on Wednesday.
Stockton sees bitcoin hitting resistance near its 50-day moving average at $35,000, representing potential upside of 8% from current levels. If bitcoin can decisively clear that level, bitcoin would likely gravitate towards its 200-day moving average near $44,000, representing potential upside of 36% from current levels.
Ultimately, bitcoin holding the $30,000 support level is instrumental for bitcoin bulls as they look to stem the significant bleeding in the crypto space that has occurred since bitcoin topped out near $65,000 in mid-April.
Read more: The head economist at a blockchain fintech firm names 2 of the most promising crypto SPAC deals on his radar - and explains why blank-check companies can be better alternatives to buying cryptocurrencies
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