Bitcoin (BTC) prices shot upwards by 12% on July 26.
The massive jump comes on the back of rumours that Amazon is planning to incorporate BTC transactions.
BTC gained by 34.2% over the last seven days.
NEW DELHI (CoinChapter.com) — Bitcoin (BTC) prices are rallying upwards over the past week. The flagship cryptocurrency fell below the $30,000 support for the third time on July 20, since May’s market crash. However, an upward rally from July 21 saw the crypto break above $32k resistance.
Now, news about BTC’s adoption by Amazon seems to have added fuel to the crypto’s uptrend, as it registered a jump of 12% from Monday’s low of $35,455.78. While there is no official confirmation yet, an insider from Amazon claims that the e-com giant may begin accepting BTC payments by the end of 2021.
Price Charts For BTC
Bitcoin prices took off once news about Amazon’s alleged crypto-adoption plans hit the internet. Although BTC prices have been trending upwards for the last six days, the crypto jumped 12.08% to nearly breach the $40,000 resistance as it rose to an intraday high of $39,791. However, prices corrected soon afterward, and BTC dropped to the $38,000 price band.
Bitcoin broke above the June-July descending trend line on July 21. Following that, the crypto began a bullish rally, which saw it break above the 50-Day (Green) Moving Average trend line over the weekend. A move above the 50-Day MA makes BTC bullish in the short-term range.
Moreover, the 20-Day Exponential EMA and 50-Day MA may soon form a support confluence near the $35,000 level. The recent Bitcoin bull run saw the crypto breach resistances at $32,000, $34,000, and $35,000 in a matter of days. Thus, the last resistance level, $35,000, is now critical support for BTC.
In addition, the new resistance for Bitcoin is at $40,000, which is very near to BTC’s 100-Day (Red) MA trend line. If bulls break above it, the next resistance lies at $41,200.
BTC prices are trading below their 100-Day and 200-Day (Yellow) moving average trendlines, which indicates the crypto is bearish in the mid and long-term ranges. However, Bitcoin’s Relative Strength Index moved above its 7-month descending trendline (January 2021-July 2021), a bullish momentum signal. Historically, BTC has made significant upside movement whenever its RSI broke above a downtrend.
RSI for BTC is at 65.87, which is still neutral but uncomfortably close to the overbought levels.
Bitcoin’s MACD momentum indicator provides more bullish hints. The MACD histogram is rising steadily above zero, as the MACD line (Difference of 12-Day and 26-Day EMA on the daily chart) moves above the MACD signal line (9-Day EMA of MACD).
BTC’s 200-day MA trendline is forming resistance near the $44,500 level. Therefore, the combination of a price breakout above the 50-Day MA and RSI breaking above a downtrend is a robust bullish indicator for BTC.
Bitcoin On Delivery- Coming Soon?
The rumor mills started working overtime after Amazon published a job posting last week for blockchain and cryptocurrency lead. Specifically, the new hire will work with the Amazon Payment Acceptance & Experience Team. Moreover, the job description states that the person hired will develop Amazon’s crypto strategy and product roadmap.
Additionally, the job posting required applicants to have a “deep understanding” of the cryptocurrency ecosystem.
Now, an anonymous source within Amazon told a London-based newspaper that the tech behemoth is planning to accept Bitcoin payments soon, possibly by 2021-end. As per the source, adopting Bitcoin is an essential aspect of ‘the future mechanism of how Amazon will work.’
The insider claimed that Bitcoin is just the beginning, and Amazon CEO Jeff Bezos is a part of the project. Furthermore, she said that the next step would involve adopting other significant cryptocurrencies. She added that Ether and Cardano would be considered after Bitcoin.
It seems that plans were in the works since 2019. The insider stated that the project is ready to roll. However, more intriguing are Amazon’s plans once its crypto adoption is all squared up. As per the inside source, Amazon plans to launch its native cryptocurrency by 2022.
In the recently concluded B Word Conference, entrepreneur Elon Musk accepted that along with Tesla, both he and his privately owned company, SpaceX, hold Bitcoin. In addition, investment advisor firm Ark Invest announced on June 29 that it was creating a Bitcoin exchange-traded fund. Since then, under Cathie Wood’s leadership, the investment firm has purchased around 450,000 shares of the Grayscale Bitcoin Trust for its ARK Next Generation Internet ETFs.
At the time of writing, Bitcoin was trading at $38,475.94, up 10.71% on the day.
A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.