Does Elon Musk Have Superpowers?
Updated
For the question in the graph, if you choose any answer that doesn't include Elon, congratulations! your IQ is more than 0.
Many of the Crypto traders idolize Elon Musk to the point of laughing at his jokes on SNL. They like to think of him as Tony Stark of sorts and some kind of a modern redeemer who is sent into the "simulation" in order to take humanity to Mars. Lately, even many "professional" analysts have jumpen on that wagon, attributing to him the super power of single-handedly bringing the Crypto market to new lows, making it lose 20% of its value just because the "real" Iron Man's climate conscience has just woke up to the fact the Bitcoin's mining is a big consumer of power. Now, even many of his worshipers after finding that their wallet were getting slimmer by the second, have made him into a Marvel villain.
Reality is more boring, unfortunately. In order to prove this, I offer you a simple check: momentum. Here are the steps:
Based on these simple checks, the said tweets had 0 effect, since the decline is perfectly fitting to the continuum of the trend. In addition, recent stock market correlation also had a major effect, given that the stock market is currently going down.
These are simple checks; there are other ones involving more precise mathematics and better visuals, and Elon Musk is not any equation. BTC is no DOGE in term of volumes, and if Mr. Musk was so godly, he should have saved TSLA's prices from tanking instead.
Many of the Crypto traders idolize Elon Musk to the point of laughing at his jokes on SNL. They like to think of him as Tony Stark of sorts and some kind of a modern redeemer who is sent into the "simulation" in order to take humanity to Mars. Lately, even many "professional" analysts have jumpen on that wagon, attributing to him the super power of single-handedly bringing the Crypto market to new lows, making it lose 20% of its value just because the "real" Iron Man's climate conscience has just woke up to the fact the Bitcoin's mining is a big consumer of power. Now, even many of his worshipers after finding that their wallet were getting slimmer by the second, have made him into a Marvel villain.
Reality is more boring, unfortunately. In order to prove this, I offer you a simple check: momentum. Here are the steps:
- Draw a curve across all the high points in the trend and and another across the low points. If they are both curving downwards, then the momentum is definitely downwards. This would also give you a rather simplistic projection (channel) of where the price should move, as long as the trend would continue, of course.
- Check the volume. Tipping points are usually surrounded by a surge in volumes.
- RSI is an important measure of momentum. When less than 30 or more than 70. the momentum is at its highest and a turnover may come at any time (one must be careful about this duality). In between those numbers, a turn over is likely more if we are inside a range.
Based on these simple checks, the said tweets had 0 effect, since the decline is perfectly fitting to the continuum of the trend. In addition, recent stock market correlation also had a major effect, given that the stock market is currently going down.
These are simple checks; there are other ones involving more precise mathematics and better visuals, and Elon Musk is not any equation. BTC is no DOGE in term of volumes, and if Mr. Musk was so godly, he should have saved TSLA's prices from tanking instead.
Note
The crash the very next day had proved me right and yet some people are crying China and Elon. Market correlation (downward by inflation) and cycles are the only reasons, all the rest is just the noise of jumping to conclusions. The closest mainstream analysis to the truth so far that I could find is below.moneyweek.com/investments/alternative-finance/bitcoin-crypto/603291/bitcoins-crash-wasnt-about-elon-or-china-it
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