One of the best strategies in recent times: the Elon Musk Setup
It is not new, the billionaire, CEO of Tesla and SpaceX, has realized that he has the ability to manipulate the crypto market and frequently does some ‘experiments’ to prove his influence.
There is no RSI, Bollinger Bands, Moving Averages, Stochastic, Tabajara and not even a more focused fundamentalist study. The great indicator that Elon Musk uses is: Twitter.
And we won’t bring all the tweets since he started, let’s just focus on the last 48 hours where he made 2 posts citing cryptos: one by Doge and one by Bitcoin – and amazingly, operating in different directions; long and short – “genius”.
Let’s go to Trades
First, on 06/02/2021, at 4:05 in the morning, a tweet referring to DOGE with a funny, humorous and aware of its influence.
Found this pic of me as a child pic.twitter.com/hUEKluRAdP
— Elon Musk (@elonmusk) June 2, 2021
“I found this photo of me as a child”
“I have to keep my passion hidden from the public or I will be socially ostracized”
And the image of him as being Dogecoin’s puppy. Now let’s go to the graph.
Notice that the price goes up +18% after the tweet and, more interestingly, has an unusual high of 20% before the Tweet. This could be the ‘buy’ of Musk before the manipulation.
If indeed Elon Musk bought before, just in DOGE he could have taken more than +35% profit.
But this week the billionaire is sharp. Not satisfied with his gain at Doge, he decides to make another test of Setup Elon Musk, now operating short and in the main cryptocurrency in the market (“Let’s see how my influence is”) – See the tweet below on 03/06/21 at 22:07h.
— Elon Musk (@elonmusk) June 4, 2021
After a #Bitcoin and a broken heart, a meme:
“She: I know I said it would be over between us if you cite another Linkin Park song, but I found someone else.
Him: So in the end it didn’t even matter?”
Would someone else be another crush cryptocurrency with more volatility when manipulated? Was it the Doge?
Maybe, but regardless, let’s see how the price behaved in the graph:
We can see that since the tweet, the price has come down 8%. Much less than the ‘trading’ of Doge and also you can’t know when it sold. But taking into account that he bought deep down ($35k – $33k) and sold before the tweet, we can also see a gain of more than 10% in the long run.
This is all without mentioning that he may be operating leveraged. These values that we show, in just 2 days, are without leverage.
The conclusion is that:
→ Elon Musk saw that he has a great influence in the crypt world and became a great manipulator. As the market is decentralized, its actions, so far, do not bring any legal consequences for it.
→ The market can still be manipulated. Even Bitcoin hitting $1 trillion Market Cap isn’t immune to manipulation, especially for a tech guru with 56.5 million Twitter followers.
→ The great dominance of Bitcoin in the market (today about 41%) still weighs heavily. When Bitcoin drops, the vast majority of Altcoins also drop and usually by the same or more rate.