After months of rumors, Elon Musk buys twitter for $44 billion; plus our weekly BTC and ETH analysis
- Elon Musk Completes Acquisition of Twitter for $44 Billion
- Bitcoin/USD – Bitcoin at Midpoint
Elon Musk Completes Acquisition of Twitter for $44 Billion
After months of rumors and Elon Musk flipping back and forth, it was announced late last week that the world’s richest man has finally purchased Twitter for $44 billion dollars. After the announcement Twitter filed regulatory documents asking to remove its shares from the New York Stock Exchange. As a privately owned company, twitter is subject to fewer rules and can be more tightly controlled by an owner. Regulators will still closely monitor what changes Elon makes at twitter, especially in Europe, as there was a new law that passed this year in the European Union that could subject twitter to fines if it fails to address problems such as toxic speech and misinformation. Elon said the company would form a content moderation council with “widely diverse viewpoints”. Shortly after the Twitter deal was closed, Parag Agrawal, Twitter’s chief executive; Ned Segal, the chief financial officer; Vijaya Gadde, the top legal and policy executive; and Sean Edgett, the general counsel, were all fired from the company.
BTC/USD – Bitcoin at Midpoint
BTC Daily Chart
BTC Weekly Chart
At the time of writing, bitcoin is priced at $20.5k and is consolidating right below the midpoint of the range. In last week’s article we mentioned the importance of Bitcoin needing to reclaim the $20k handle and since then it has reclaimed this level. The next area of resistance to overcome is the midpoint level of the range located at $20,750. If Bitcoin can close above this level, a move to the top of the range at $22.5k is likely.
Bitcoin Bull Scenario
Bitcoin pushes over the range midpoint level at $20.7k on a daily closing basis. A move to the range high located near $22.5k is likely.
Bitcoin Bear Scenario
Bitcoin rejects from the midpoint level and the range support at $18.9k is the first most likely area of support.
ETH Daily Chart
ETH Weekly Chart
At the time of writing, Ethereum is trading at about $1560, and has managed to break out above the range it traded in for 5 weeks. The next major area of resistance shows confluence with both the multi-week diagonal trendline and the horizontal level of resistance located near the $1.7k – $1.8k area. I expect volatility around this area as bears want to keep price below the resistance and bulls want to see price trade above these resistances.
Ethereum Bull Scenario
Ethereum closes over the $1.7k – $1.8k level and I believe there is more upside to come.
Ethereum Bear Scenario
Ethereum rejects from the $1.8k area, loses the $1.4k level, and the next area of support should fall near the $1k handle.