Elon Musk revives Bitcoin, but downside risks remain

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The world’s most popular crypto has seen relative bullish feelings after falling above $ 32,000 in the early hours of Thursday after the flagship crypto tested support levels of $ 29,500 for the second time and rebounded successfully amid heavy buying pressures.

Bitcoin bulls are riding the price wagon high, especially as the world’s influential tech billionaire Elon Musk, Twitters founder Jack Dorsey and Cathie Wood have spoken about the future of Bitcoin.

The 50-year-old tech billionaire reiterated his support for the flagship crypto, claiming he owns Bitcoin, Ethereum and Dogecoin. Elon Musk also revealed that SpaceX also holds Bitcoin holdings like Tesla.

The move marks a quick reversal of the bearish bias that has dominated cryptocurrency over the past few days after Bitcoin fell below the $ 30,000 mark, dragging many more altcoins into the red.

Major altcoins are also seeing some form of rally, with Ethereum surpassing $ 2,000 on the FTX exchange as it posted daily gains of around 7.5% on Thursday morning. Other notable gainers included Dogecoin, which posted gains of around 8%, while XRP traded close to 59 cents as it posted gains of 7% for the day.

Yet market sentiment still remains relatively nervous, due to low trading volumes in the crypto derivatives market, amid fears that a spike in the Delta variant of COVID-19 and the dollar surge. America is once again interrupting the full recovery of the global economy.

Additionally, price action suggests that the flagship asset is not yet out of the woods, as increased regulatory oversight in China, Europe and the United States gains momentum, further preempting that it could still test $ 25,000 price levels in the coming weeks, although a break above $ 35,000 could narrow such a narrative.

This article originally appeared on FX Empire

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