Tesla CEO Elon Musk is facing a class action lawsuit over his Dogecoin hype; plus our weekly BTC and ETH analysis
- Tesla CEO Elon Musk Faces $258 Billion Lawsuit Over Alleged Dogecoin Pyramid Scheme
- Bitcoin/USD – Bitcoin Relief Bounce
Tesla CEO Elon Musk Faces $258 Billion Lawsuit Over Alleged Dogecoin Pyramid Scheme
Tesla CEO Elon Musk is facing a class action lawsuit over his Dogecoin hype and plaintiff Keith Johnson is the Dogecoin investor that is suing him claiming that his Business’s activities around Doge defrauded him and other investors in what basically amounts to a pump and dump or pyramid scheme. The complaint alleges that Elon’s constant messaging that he was a supporter of the coin, and his engagement with dogecoin developers directly led to its price spike, and when market conditions changed investors were negatively affected by the price decrease. Elon Musk later came out and stated that the dogecoin community is not a formal organization and that nobody reports to him as a leader. Johnson is seeking $86 billion in damages representing dogecoin’s decline since May 2021, and wants it tripled. He also wants to block Elon Musk’s ability to promote dogecoin and wants a judge to declare that trading dogecoin is gambling under federal and New York law. Musk has a history of legal actions over his tweets, and in 2018 he settled with the SEC for misleading investors after prematurely tweeting that he would take Tesla private.
Bitcoin/USD – Bitcoin Relief Bounce
BTC Daily Chart
BTC Weekly Chart
At the time of writing, Bitcoin is priced at about $21.2k after seeing some short term relief and bouncing from its wick low of about $17,500. Although price did fall below its 2017 high located at $20k it has managed to give a weekly close over the level. The next important level to watch out for is the weekly 200 moving average which is directly above current price located at about $22.4k. If price can reclaim this level, the next nearest resistance on the daily timeframe for Bitcoin is located around the $28k area.
Bitcoin Bull Scenario
Bitcoin maintains the 20k previous ATH level, while also reclaiming the 200 weekly moving average on a weekly closing basis and a move to $28k is a likely possibility.
Bitcoin Bear Scenario
Bitcoin does not maintain the $20k level and the next nearest support level falls around $14k.
ETH Daily Chart
ETH Weekly Chart
At the time of writing, Ethereum is priced around $1160 and has still not reclaimed its 2017 all time high level, although price is still trading above its 2017 highest weekly close. More importantly, the price is sitting right under its 200 weekly moving average similar to bitcoin. If Ethereum can give a weekly close over this level, the next resistance level would be the 2017 all time high located at $1419.
Ethereum Bull Scenario
Ethereum maintains price above the current weekly candle body support level located at $1105 while reclaiming the weekly 200MA support level on a weekly closing basis and a move to the 2017 ATH is in the cards.
Ethereum Bear Scenario
Ethereum does not hold these support levels and pushes down to its next support level located around the $700-$800 area.