Amazon delivers recovery to Bitcoin, Ethereum

Key Takeaways:

• Amazon shares rallied late Thursday after the company posted big earnings in its fourth quarter.
• Bitcoin broke above $40,000 with Ethereum targeting $3,000 after Amazon’s news spread.

NEW DELHI (CoinChapter.com) — The top cryptocurrencies gained on Friday after Amazon reported a 9% increase in its fourth-quarter revenue. As a result, Amazon’s shares popped up nearly 14% in extended trading on Thursday.

Amazon’s shares continued their uptrend on Friday. As per Amazon’s report, the adjusted earnings per share were $5.80, 62.4% above the expected $3.57. Furthermore, Amazon’s net sales increased 9% to $137.4 billion in the fourth quarter on a year-to-year basis.

Amazon’s fourth-quarter net sales were the firm’s first period of single-digit growth since 2017. In addition, the company reported a nearly $12 billion gain from its investment in electric vehicle company Rivian.

Moreover, Amazon’s decision to raise flagship Prime membership fees was also positively received by investors.

Amazon’s rising prices bolstered investor confidence in technology stocks. Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies have tracked tech stocks’ price movement over the past few months. As a result, Bitcoin and the wider crypto market started a strong relief rally on Feb 04.

Bitcoin prices nearly went vertical on Friday, burgeoning past previous resistances to move above $40,000 for the first time since Jan 21’s crash. BTC price rallied nearly 10% in less than 24 hours on Feb 4.

Along with BTC, Ethereum, the second-largest cryptocurrency, prices jumped too. The prime altcoin hurtled past resistance at $2,800 to reach nearly $3,000. However, the $3,000 price level remains elusive for the Ethereum token.

The wider crypto market reacted as well, with the uptrend adding nearly $149 billion to the overall crypto market cap.

Bitcoin Price Charts

Meanwhile, Bitcoin price jumped to an intraday high of $40,693. The uptrend also saw Bitcoin break above its nearly three-month descending trendline resistance. After breaching past its $39,000 resistance, BTC has resistance near the $41,000 price level.

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If the uptrend catches on, Bitcoin could move further to target resistance at $42,966, near the token’s 50-day Moving Average trendline. Finally, Bitcoin could test resistance near $44,500 before prices pull back if buying pressure sustains.

Meanwhile, if prices fall prey to profit-booking, Bitcoin has immediate support near $38,400. In addition, a sustained sell-off could pull prices down to support near $36,600. Moreover, the $35,000 price level remains critical support for Bitcoin.

The relative strength index is currently neutral, clocking 52.43 on the daily charts. Moreover, the RSI trendline rose upwards, but there’s still some way to go before RSI threatens an overbought BTC.

At the time of writing, BTC was trading at $40,800, up 9.89% on the day.

Ethereum’s Price Action

Ethereum jumped on to the Amazon-driven uptrend wagon, too, with the prime altcoin targeting $3,000 resistance after its uptrend. The target remains elusive for ETH. However, if Ethereum bulls continue fueling the uptrend, ETH could challenge resistance at $3,120.

Also Read: Ethereum correlation with the U.S. equities hit record high as ETH holds $2.5K-support.

Ethereum would breach above its two-month descending trendline resistance once it moves above the $3,000 level. A move above the descending trendline would likely bring prices near ETH’s 50-day MA line near $3,244.

On the other hand, if ETH’s uptrend breaks down, prices could move to immediate support at $2,700. Moreover, a profit-taking sell-off could bring the support at the $2,500 price level into play.

Meanwhile, the relative strength index is strongly in the neutral regions, clocking 52.10 on the daily regions.

At the time of writing, ETH was trading at $2,961, up 9.9% on the day.