Musk’s Dogecoin Tease: The Future of Digital Payments?

Get ready for some intriguing developments because Elon Musk, the Dogefather, during a session at Tesla’s Gigafactory in Berlin has hinted at the possibility of accepting Dogecoin as payment for Tesla vehicles “at some point”. Yep, you heard that right – the meme currency that started as a joke might soon be zooming around in electric cars.

It’s not just about the money either – this potential integration of the once-humorous cryptocurrency into Tesla’s payment system signifies a convergence of technology, finance, and broader market dynamics. Dogecoin’s skyrocketing value (up 9% at the time of writing), fueled by Musk’s tweets and the enthusiastic Doge community, has turned heads in the financial world. Now, with Tesla possibly jumping on board, it’s like watching a meme come to life.

But why Dogecoin? It’s the underdog (pun intended) of the crypto world, but one Elon is a major shareholder in. Musk’s open love affair with Doge has given it street cred, and if Tesla actually goes through with this, it could be a game-changer for digital currencies and cause a cascade of other Fortune 500 brands to align with crypto as a form of payment.

Elon stated in 2020 that memes rule the world with the quote – “He who controls the memes, controls the Universe”. With that in mind it appears the saga of Dogecoin and Tesla is just getting started, and who knows where this type of collaboration will take us next and the further power Elon gains from it.

Related: Institutions Flocking to Meme Coins? Franklin Templeton Hints at Trend

Supply, Demand and the Halving 

The arrival of Bitcoin ETFs has sparked an unprecedented surge in demand for Bitcoin.

Yeah, I know you’re probably sick of hearing it, but think about it…if demand remains steady but the new supply suddenly drops (aka half like it will next month), the price has to adjust to balance things out, right? That’s just basic supply and demand, economics 101. We saw this happen back in 2020 when Bitcoin’s supply got slashed, and boom, price go up.

But this time, it’s a bit of a game-changer.

With the ETFs in play, the demand is off the charts. We’re talking about the equivalent of 9,000 to 10,000 Bitcoins being snapped up every day. That’s roughly 10x more demand than what’s available! So, after the halving, if demand holds steady, we could be looking at 20x more demand than what the network can churn out each day. Crazy, right?

This means billions pouring into it in the short term and potentially trillions in the long run.

No matter how you slice it, we feel the price is headed in one direction, up.

What Are The Charts Telling Us?!

Let’s start with Bitcoin Dominance (BTC.D) sitting in a rising wedge pattern forming on the Bitcoin dominance chart could potentially signal a reversal in the dominance trend. This pattern typically indicates a period of decreasing dominance, which means that (altcoins) could start gaining strength relative to Bitcoin which is always exciting for a majority of holders. 

Targets are set at either 52% or 50% for BTC dominance unless we are invalidated and we continue to break through the 57% levels. As we approach the halving period and anticipate the supply shock to Bitcoin, the trajectory for BTC prices seems clear: upward. Even if we witness a temporary dip, as history suggests before halving events, the overall trend for Bitcoin remains bullish.

Accurately forecasted the breakthrough of the $1 trillion market cap for altcoins, thanks to a textbook cup and handle pattern on the charts. Now, we find ourselves at a crucial juncture, facing resistance after a colossal surge across the board. It’s time to kick back and let some profits roll in, but remember, even in the wild world of crypto, resistance is futile—until it isn’t!

Related: Glassnode Key Indicators Signal Bitcoin’s Entry into High-Risk Territory

Heading towards BTC, the undisputed ruler of the crypto realm. We flawlessly executed the cup and handle strategy, smashing through resistance levels. BTC ETF inflows continue to shatter records, with Blackrock amassing holdings akin to Saylor’s legendary stash. If this isn’t a crystal-clear sign, then I don’t know what is! Blackrock’s presence signals a new era, but remember, with great power comes great market manipulation potential.

On the Daily Chart, BTC has surged past its previous all-time highs, signalling a significant breakthrough. However, to solidify its position as the frontrunner, a retest at these previous peaks is imperative. Interestingly, a meticulous examination reveals a 4-hour candle precisely executing this critical retest. This reaffirms the importance of historical levels and the market’s reverence for them in shaping BTC’s trajectory moving forward.

DAILY CHART

4HR CHART