Early in February Elon Musk announced that Tesla buys Bitcoin for $1.5 billion and this really affected the cryptocurrency market. In this article I will share with you what was the effect, when did Tesla buy Bitcoin actually and what will be my next target.
When did Tesla buy Bitcoin?
I have hundreds of videos on YouTube, and I’ve never afforded to say I told you so, but now I can say it, I told you so. In a video that I recorded on the last day of 2020, what happened actually, is that the price of Bitcoin reached my target of $48,105 perfectly.
This is after Tesla and Elon Musk announced the buying of $1.5 billion worth of Bitcoin.
In the video, I said, ‘Today is actually already 31st of December, I’m recording 3 minutes after midnight.’ And at the end of the video, I placed the 2 targets. These are $35,918, as the first Fibonacci target and the 2nd one at $48,105. At the end of the video, I said something very important as well.
‘Below the $50,000, I’ll be very happy to sell any of my cryptos.’ So the target was reached much earlier, honestly, than I thought. It was reached on the 9th of February 2021. I was thinking more of March or April but as I’ve said, Elon Musk and Tesla’s announcements that they buy Bitcoin in January were the reasons why it got that value so quickly. In this lecture, I want to talk a little bit more about it.
PayPal offers cryptocurrencies to its clients
And I will share with you what I personally think happened because that news on CNBC which was all over the place, was on the 8th of February. When Tesla announced that they have bought $1.5 billion of Bitcoin and they said that they have bought it on Monday.
And actually, the 8th of February was Monday. So it means that they bought it the previous Monday, which was the 1st of February. However, Elon Musk tweeted a few days earlier on the 29th of January.
He didn’t even tweet, what he did was he wrote #Bitcoin on his profile which caused that move of almost $4,000 in 1 hour.
So this is the moment when he wrote the hashtag. And later they announced that on Monday they have bought Bitcoin.
So I don’t personally believe, and I don’t think anybody would believe that Elon Musk will put the hashtag before he or Tesla buys the Bitcoin. He is smart enough to buy Bitcoin much before he placed the hashtag. Or he announced that Tesla bought $1.5 billion. I truly believe that he has bought way far below the $20,000 or even the $15,000 after PayPal announced that they will offer cryptocurrencies to their clients.
My next target
Actually, I’m not sure if you know but PayPal was Elon Musk’s product that he sold many years ago.
And what I think is that he just waited for the moment to make the announcement, or to put the hashtag, or to support Bitcoin in any way.
I have cleared the trading chart from all my drawings and entries that I had so you can see exactly where were the announcements that Tesla buys Bitcoin.
So I have kept just the target which worked really nice one more time.
And at the end of the lecture, I will be putting the next target. So you will see what are my next targets.
But what’s more important here, and you need to keep in mind that this will be a domino effect. Because of the news where Tesla buys in Bitcoin for $1.5 billion, they already affected the market. So the important thing is what will happen from now on.
I truly believe that this will be a domino effect and all the investors will be more willing to diversify their portfolios including Bitcoin. And at the same time, imagine you’re an investor. And you use John’s fund and John is a hedge fund that follows the old rules. They don’t trade the cryptos, they are happy if they offer you 10-15% a year.
Setting my Fibonacci target
And then, you will say to John, to your hedge fund manager, ‘Hey John, why are we not participating in the Bitcoin-like what Elon Musk does?’ Why are we not taking these profits while everyone else is already into Bitcoin? So the hedge funds managers will be squeezed from the investors to buy Bitcoins and to be involved like Tesla.
Because obviously as you know what happened, some of the hedge funds, already gained over 100% for a few months. Something that has never happened before with any investment. And I have mentioned that in a few of my videos, I’m not going to link them now. But I’ve said that in 2020 and 2021, the difference is that the big guys, the big investors, and the big companies like Mastercard, Square, and Tesla buy the Bitcoin and the cryptos, not like the mass of people in 2017.
This is why I have been participating more and more in the crypto market. And I’m truly happy that the Fibonacci target and the system that I have explained in my Cryptocurrency Investment Strategy course work so well.
So now let me put the next Fibonacci, I will demonstrate to you how it works and you will know what to expect as the next target for Bitcoin price.
The Candlestick
I will take the new high and I will go to the lowest point of the retracement after the last Fibonacci. So that was the top of the last Fibonacci, and we have the lowest point. Now it’s very important to draw it precisely, so I will just zoom down to the Candlestick which was the lowest point. On the top, the lowest price is $25,770.
So click on the Fib and I will put a price of $25,770. And I will click on OK, and it’s exactly in there.
Then I will go to the top and I will do the very same thing. Let me see what is the record high that we have with Bitcoin for the moment. I will zoom in, that’s why I cleared the chart from all the drawings. I do that from time to time, to make sure that I have a plain chart.
That way, it’s easier to see what’s going on. The highest point is at $48,216.09. So I will click again on settings and will put the right value so I set $48,216. So I didn’t put the target before writing this article, and it’s interesting for me as well to see where will be the next targets. Obviously, they will be far away above the $50,000.
Price breakthrough
So first target is at $62,877.7.
And then we have the second target at $84,533.86.
So keep in mind that we have the round of $50,000, which definitely will be resistance.
And it might take some time for the price to breakthrough. That’s why I said I’ll be happy selling some of my Bitcoin, and I have sold actually about 30%. So now I’m waiting for a nice retracement.
We already have a counter-trendline but if we have a better opportunity to buy at a cheaper price, that would be even better. And then I’ll be definitely looking at these next targets because if the $50,000 breaks, I truly believe that the price will easily reach the $62,000. And then that’s the one I’ll be looking at, $84,533.86. So we’ll see if or when the price gets into there.
Keep an eye on Elon Musk’s Twitter profile, because sometimes you might find the reason why there are such moves on the market especially with Bitcoin and the cryptos. And as well keep an eye on Ethereum because it has a huge potential, as I’ve mentioned in a few of our YuuTube videos as well. So I diversify between Bitcoin and Ethereum right now.
Thank you for reading this article. I hope this makes it clear how to news that Tesla buys Bitcoin affected the market. If you want to get some free cryptos, check out the link below the video. And share in the comments what are your targets and if you agree with mine or not. Take care and I will see you in another lecture.