Bitcoin Is No Joke Despite Naysayers

Bitcoin Enters Twitter, Erases Losses, and Gets Compared to Kenny

by Bogdan Giulvezan

Throughout history, Bitcoin naysayers called it “dead” hundreds of times. It’s dead because of this, because of that, it will never work, et cetera, et cetera… and yet here we are, with Bitcoin alive and well, used as a valid investment vehicle by major funds and companies, and even used as the official currency of a country.

This dead-alive cycle prompted Dennis Lynch, Morgan Stanley’s head of Counterpoint Global to compare it with Kenny from South Park, a character with similar “capabilities”. Kenny McCormick is one of South Park’s protagonists and died 98 times in the series, becoming a sort of meme.

Dennis Lynch commented at Morningstar’s annual investment conference: “I like to say that bitcoin is kind of like Kenny from South Park, you know, the guy dies every episode and he’s back again.” Good to know that the “big money” guys are watching South Park!

In other news, Twitter will allow users to tip content creators using Bitcoin. The feature was previously limited to just a few testers but now all users with iOS devices can send and receive BTC payments via the Lightning network. Esther Crawford, Twitter’s product lead for creator monetization said: “We believe we can continue to incentivize the types of conversations that people want to see”.

Twitter also plans to grow the “Spaces” feature and plans to launch a fund meant to financially support users who create periodic audio content on Spaces. These content creators will also receive technical and marketing support, which may lead to better monetization for them and possible sponsorships. NFT (non-fungible tokens) support is also in the works and all these improvements are meant to allow Twitter to better compete with platforms such as Facebook and YouTube.

Chart Analysis – BTC/USD

Last week we talked about the importance of the $45,000 level but unfortunately, it was broken and this was immediately followed by a touch of $40,000. However, Bitcoin quickly erased losses and jumped to $45,000 which is now resistance.

This price action shows that $40K support and $45K resistance are crucial for Bitcoin’s medium-term movement. There is a possibility that price may start to range between the two levels (similar to what happened between $30K and $40K), but what is clear for now is that resistance is too hard to break.

Rejection is present at resistance, which suggests that another move lower, towards $40K is very likely, especially if we won’t see a quick break of $45K. Price is below the 50 days Moving Average and both indicators (MACD and RSI) are moving lower, thus from a technical standpoint, the outlook is bearish but things can turn on a dime in the crypto space.