Cryptos Extend Losses After Obscure Elon Musk Tweet
It appears that Elon Musk isn’t too concerned about the SEC and is determined to continue posting his crypto market-moving tweets.
Elon Musk is at it again and cryptos are responding. Earlier this morning, Musk lit up Twitter with an obscure reference toward Bitcoin. The Tesla CEO tweeted a breakup meme and tagged it #Bitcoin. Crypto players are now running for the hills and prices are headed south across the asset class.
In a Live Market Update from yesterday, I broke down the growing rift between Musk and the U.S. Securities and Exchange Commission (SEC) over his Twitter feed. If you missed it, check it out here. It appears that Elon isn’t too concerned and is determined to move forward posting his crypto market-moving tweets. Given the growing SEC intervention into the cryptosphere, and Tesla’s holdings of BTC, it will be a surprise if the U.S. government doesn’t turn up the heat on Musk.
Thus far, the markets haven’t liked Musk’s antics. Cryptos are selling off, led by Bitcoin BTC (-4.08%), Ethereum ETH (-4.48%), Litecoin LTC (-6.47%), and Ripple XRP (-6.15%). Dogecoin (-8.84%) and Polkadot (-8.30%) are also in the red. Let’s take a look at a potential weekend trade in Dogecoin.
Musk Tweets, Cryptos Retrace
As you can see from the daily DOGE/USD chart below, Musk’s tweet prompted a test of the daily 50% Fibonacci level and SMA. If we see another surge lower, a buying opportunity may come to pass.
Bottom Line: If Elon Musk sends cryptos lower over the weekend, I’ll be looking to buy DOGE/USD from $0.3450. With an initial stop loss at $0.3050, this trade produces $0.04 (11.5%) on a standard 1:1 risk vs reward ratio.
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