Bitcoin spoofs $39.5K breakout at Wall St open as Elon Musk Twitter takeover nears

Bitcoin (BTC) saw a classic “fakeout” move on April 25 as volatility kept traders firmly on edge.

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BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Traders stay gloomy on BTC outlook

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD briefly climbing almost $1,000 as Monday’s Wall Street trading session began.

The move was short-lived, the pair coming back down to where it started within an hour after hitting local highs of $39,517 on Bitstamp. 

Monday had begun with a whimper for Bitcoin bulls, who lost ground on the weekly close and failed to avoid $40,000 flipping to resistance on daily timeframes.

For popular trader Crypto Ed, $30,000 was still on the table as a potential short-term target. 

“To me, it seems any bounce we see in the coming days is a shortlived bounce,” he said in his latest YouTube update, forecasting a “red week.”

Crypto Ed added that a push above $40,500 would provide a reason to be “slightly bullish.”

Downside momentum had increased after Asian stocks lost heavily over Coronavirus concerns in China. European markets fared better on the open, while in the United States, the Nasdaq 100 even managed to start gaining in the second hour of trading.

The S&P 500 was still down 0.43% at the time of writing, nonetheless attempting to make up for lost ground.

Popular Twitter account John Wick meanwhile voiced caution about making any trades up or down based on current price action.

“Waiting this out was a good decision. Still no viable long setup. We have not made lower lows though. Same range for now,” he told followers on the day.

“There is however a squeeze forming. We’ll have to wait for the resolve of the breakout.”

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BTC/USD annotated chart. Source: John Wick/ Twitter

Dogecoin an early winner in Musk Twitter deal

Helping buck the shaky ground for tech stocks was Twitter itself, which added 5% on the open after news that executives were likely to accept Elon Musk’s buyout bid.

Related: ‘Something sure feels like it’s about to break’ — 5 things to know in Bitcoin this week

After previously voicing opposition, Twitter’s board could agree the deal, which would see Musk acquire the company for $43.4 billion, later Monday. That would equate to $54.20 per share compared to the current spot price of $50.36.

“I think there’s a lot of frustration everywhere in the world right now that’s circulating about and you see that reflected on Twitter; this is indicative of that,” MicroStrategy CEO Michael Saylor told Bloomberg.

“It’s a bit above my pay grade to determine how the entire chapter ends; it definitely makes for interesting watching.”

He added that he “wouldn’t mind” if Musk were to own Twitter.

Musk is well known for his fondness for Dogecoin (DOGE) and criticism of Bitcoin’s alleged environmental problems, a perspective in stark contrast to former CEO Jack Dorsey.

Saylor said that he had not spoken to Dorsey about the takeover.

DOGE/USD was up 5% on the day at the time of writing, making it the best mover in the top twenty cryptocurrencies by market cap.

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DOGE/USD 1-hour candle chart (Binance). Source: TradingView

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