Should we thank Elon? BTC almost touched $40k

Bitcoin went up sharply yesterday to break out of the Bearish Flag pattern. Following a tweet from Elon, in which he stated that Tesla will start accepting bitcoin once 50% of the mining pool goes green, Bitcoin jumped to levels over $39k. He also confirmed that Tesla hasn't sold any more Bitcoin since the company sold 10% holdings to check the market's ability to absorb large sell transactions. Today, Bitcoin nearly touched $40k but I will wait for it to close above $39k before contemplating any longs. I wish Elon's thinking spreads across the world and people buy EVs when energy companies go 50% green.

Bitcoin dominance has been increasing and has crosse the 50 DMA resistance. Despite gains in Bitcoin, altcoins did not exhibit their high beta character, and Bitcoin dominance went up yesterday as well. I think the market is still risk-off and is being cautious regarding altcoin buying. Bitcoin dominance takes me to another interesting chart - ETHBTC.

ETHBTC dropped below 50 DMA on the daily chart. Can it be a cause of concern? I don't think so. What is interesting about this chart is the big bull flag. Need to see it better? Check out the weekly chart -

The bull flag on the weekly is more evident and I believe ETH is poised for massive outperformance over bitcoin during the second half of the year. What else can you spot? Something that always catches media attention. Can you see the impending Golden Cross? ETHBTC looks really exciting to me. I will wait for Bitcoin to start its leg up and then the trade between Bitcoin and Ether is definitely the latter in my opinion.

Anyway, before I forget - Thank you Elon for helping Bitcoin avoid a tragedy for now. The flag pattern was already looking weak and the market just needed a little push to get excited. That is what leadership is - provides positivity when prospects look bleak. Thanks a ton to you and your trading desk head! Bitcoin - Upwards, and Onwards!

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