Tesla ditches Dogecoin and buys $1.5 billion in Bitcoin instead pushing prices to new all-time highs

Earlier today, Tesla announced a $1.5 billion investment in Bitcoin under a new policy and also stated that they are expecting to accept BTC as a form of payment soon. Of course, Bitcoin price reacted extremely well and pushed to new highs at $45,000. 

Many exchanges suffered significant outages, including Binance, which was partially down for several minutes. Elon Musk has been talking about Dogecoin for the past several months, however, it seems that the business magnate has ditched the meme cryptocurrency and only bought Bitcoin.

Bitcoin price surges by 17% thanks to Tesla

On the daily chart, Bitcoin price had a breakout from a descending triangle pattern on February 2 with a price target of $45,000, which was just hit in the past few hours thanks to a big announcement from Tesla.

BTC/USD daily chart

However, given the magnitude of the announcement, Bitcoin price could continue surging even more. Tesla also stated that its prepared to accept BTC payments in the near future, which should increase Bitcoin’s use cases even more. 

BTC Holders Distribution

Since December 26, 2020, the number of large BTC holders with 1,000 to 10,000 coins has increased from 2,120 to 2,393 currently, which indicates the current Bitcoin rally has a lot of strength behind it. 

BTC MVRV (30d)

However, this recent surge also created a significant spike in the MVRV (30d) for Bitcoin climbing to 21.7% and slowly approaching the danger zone above 30%, which usually indicates an asset is on the verge of a correction.