Elon Musk, $40K and no demand: 5 things to watch in Bitcoin this week

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Bitcoin (BTC) starts a new week on a pleasant high thanks to a boost from a familiar source, Elon Musk. Are the good times back?

After spending weeks languishing close to $30,000, Bitcoin has managed to stage a sustained comeback to line up an attack on major resistance.

With on-chain indicators flashing bullish, there may be a chance of a breakout, but analysts and traders are far from 100% convinced.

Cointelegraph takes a look at five things that could influence how BTC price action unfolds in the coming days.

Musk tweet changes the game... again
The talk of the town, once again, is Tesla and SpaceX CEO Elon Musk this week.

Firmly out of favor after playing the devil’s advocate on Twitter on multiple occasions, Musk returned to the fray with news that previously seemed unlikely.

Tesla dropped Bitcoin payments earlier this year shortly after announcing them and without actually processing any BTC transactions. This, according to Musk, was due to the allegedly unsuitable energy usage involved in mining.

Widely criticized for both his logic and its impact on Bitcoin price action, Musk did not give up, with subsequent tweets on various aspects of Bitcoin and altcoins producing discernible but comparatively muted price movements.

Now, it appears the self-proclaimed “Technoking” has tweaked his social media approach once more.

Responding to a complaint from Magda Wierzycka, CEO of financial services company Sygnia, he reopened the door to Tesla adopting Bitcoin once again. Wierzycka’s criticism of Musk’s Bitcoin impact was covered by Cointelegraph last week.

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk responded, adding that Tesla still had 90% of its initial $1.5 billion BTC purchase.

BTC/USD relished the news, climbing past $39,000 to seal daily gains of over 12% at the time of writing.

Indicators produce mixed narrative
As Cointelegraph reported over the weekend, bulls’ case is being supported by a host of on-chain indicators.

Covering price versus active addresses, spent output profit ratio (SOPR) and stock-to-flow, analytic tools firmly point to an undervalued Bitcoin at current prices.

As such, predictions of a comeback in the short to mid-term are creeping in — one calls for $85,000 within the coming months, while stock-to-flow model creator PlanB still believes that $100,000 is plausible this year.

On Monday, meanwhile, there are two other charts to consider — and one is a less frequent visitor than the other.more updates