Bitcoin Breaks Back Above $39K in Largest Single Daily Gain in 6 Weeks
Bitcoin briefly traded above $39,000 for the first time since June 16 and is currently trading its sixth consecutive day in the green.
Prices have continued to rally since July 21 with Sunday’s current price rise representing the largest single daily gain in over six weeks. The world’s oldest crypto is changing hands for around $38,250, having cooled slightly after hitting a monthly high of around $39,850.
Datamish data show a short squeeze appears to have driven prices higher as those betting on bitcoin heading lower had to sell in quick succession to cover. The reason remains unclear.
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“This price action is aligning with what we’ve been seeing the past couple of weeks,” said Daniel Kim, head of capital markets at Maple Finance. “Borrowing rates for USD have started to increase from its lows.”
“We’ve also been seeing a significant increase in demand for USDC from institutional borrowers and the sentiment seems to be bullish following the news of Amazon participating in bitcoin,” Kim added.
An unconfirmed single-source story in City A.M. has reported retail giant Amazon is looking to accept bitcoin payments by year’s end and is considering minting its own token by 2022. The retail giant is also seeking a Digital Currency and Blockchain Product Lead, CoinDesk previously reported.
CoinDesk attempted to contact Amazon but did not receive a reply by press time.
Bitcoin daily price chart Source: TradingView
Other’s argue the rebound in crypto prices is a reaction to a range of good news coming from big tech and finance players from the U.S. markets.
“Most prominently, there were conversations held last week between Jack Dorsey, Elon Musk, and Cathie Wood at the Bitcoin Conference where they talked about where they see bitcoin and cryptocurrencies going with respect to their own organizations,” said Caroline Bowler, CEO of Australian crypto exchange BTC markets.
Daily volume on the Bitstamp exchange is still relatively lower than the average from previous days this year but is beginning to show some signs of revival from the breakdown witnessed in May.
Other notable cryptos in the top 10 by market capitalization are also posting gains over a 24-hour period with chainlink, polkadot, and bitcoin cash up the most between 8%-12%.
UPDATE (July 26, 2021, 2:14 UTC): Adds details on bitcoin’s short squeeze.
Bitcoin Rallies Towards USD 40K On Amazon Speculation, Liquidations Soar
Bitcoin price formed a strong support base above USD 32,000. As a result, BTC started a strong increase and it broke the USD 35,000 resistance. It even surged above USD 39,000 before correcting lower but it is currently (04:05 UTC) still showing bullish signs above USD 38,000.
Similarly, most major altcoins are gaining bullish momentum. ETH surged above the USD 2,250 and USD 2,300 resistance levels. XRP is up over 10% and it even broke the USD 0.650 resistance zone.
Liquidations in the crypto derivatives market are nearing USD 900m in the past 4 hours, led by short positions (92%), per bybt.com data. Over 80% of the total liquidations are BTC trading positions.
Total market capitalization
E-commerce giant Amazon is looking to accept BTC payments “by the end of the year” while other top cryptoassets will be accepted later, CityA.M. reported, citing an undisclosed insider.
“This is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work,” and “the directive is coming from the very top… Jeff Bezos [the founder of Amazon] himself,” the report added.
As reported last week, Amazon is looking to hire a new executive to oversee its digital currency strategy.
“We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon. We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible,” an Amazon spokesperson told Cryptonews.com back then.
Bitcoin price
After forming a base above USD 32,000, bitcoin price gained bullish momentum. BTC broke the USD 35,000 and USD 36,500 resistance levels. It even spiked above USD 38,500 and traded close to the USD 40,000 barrier. A high has formed near USD 39,800 and the price is now correcting gains.
An initial support on the downside is near the USD 37,800 level. The first major support is now forming near the USD 36,500 level. On the upside, the key weekly resistance is now forming near the USD 40,000 level.
According to Mike McGlone, Bloomberg Intelligence Senior Commodity Strategist, “bitcoin is more likely to revert toward USD 60,000 resistance vs. USD 20,000 support, if its history of recovering from similar too-cold conditions are any guide.”
@EricBalchunas @mikemcglone11 That’s a hot take on China. Rejecting things like this typically shows a fear that so… https://t.co/SIIIhCsCVl — Jay Dilks (@DilksJay)
Ethereum price
Ethereum price also started a strong increase, similar to bitcoin. ETH broke the USD 2,200 and USD 2,250 resistance levels. ETH even spiked above USD 2,300 and it is now consolidating gains. If there is a close above USD 2,320, the price might accelerate higher in the near term.
If there is a downside correction, the price might test the USD 2,250 support. The first key support is now forming near the USD 2,200 level.
ADA, LTC, DOGE, and XRP price
Cardano (ADA) gained 9% and it broke the USD 1.25 resistance level. ADA even climbed above the USD 1.30 level and it is now showing positive signs. The next major resistance on the upside is near USD 1.40. On the downside, the bulls might remain active near USD 1.25.
Litecoin (LTC) surged above the USD 125 and USD 132 resistance levels. LTC even broke the USD 135 level, but it is struggling to clear the USD 140 level. If there is a close above USD 140, the price might accelerate higher towards the USD 150 level.
Dogecoin (DOGE) gained almost 15% and it broke the USD 0.20 resistance zone. The price is now showing positive signs above USD 0.20. If it settles above USD 0.22, there could be a steady move towards the USD 0.25 level.
XRP price started a strong increase after it broke the USD 0.600 resistance. The price even surged above the USD 0.635 and USD 0.655 resistance levels. The next major resistance on the upside for the bulls is near the USD 0.700 level.
Other altcoins market today
Many altcoins gained over 10%, including AMP, BTT, ZIL, SUSHI, DGB, QNT, ALGO, RUNE, LINK, BTCB, HOT, RVN, BAKE, and QTUM. Out of these, AMP rallied over 50% and it broke the USD 0.075 level, before correcting lower.
Overall, bitcoin price is showing positive signs above the USD 37,500 level. If BTC settles above USD 39,000 and USD 40,000, there could be more upsides in the coming sessions.
Find the best price to buy/sell cryptocurrency:
Amazon News Shoots Bitcoin (BTC) Price By 15%, Over $640 Million of Short Positions Liquidated
Bitcoin (BTC) has skyrocketed 15% today moving all the way past $38,500 in a strong bounce back. The news that e-commerce giant Amazon is working to integrate Bitcoin payments at their end has brought all the fireworks.
At press time, Bitcoin (BTC) is trading at $38,315 with a market cap of $719 billion. Over $640 million of short positions have been liquidated in just the last one hour. Citing data from Bybt.com, Chinese journalist Colin Wu reported:
“Today’s liquidation volume has exceeded 800 million U.S. dollars, and the main short order has been liquidated. The short order liquidation amount in the past hour reached 640 million U.S. dollars, which is the largest single-day liquidation volume in more than two months”.
Insider Sources: Amazon to Integrate Bitcoin Payments
Last Saturday, July 25, CoinGape reported that Amazon is looking to hire a product lead for its crypto and blockchain division. In a further development, an insider source told the City AM news publication that Amazon is ‘definitely’ looking to launch Bitcoin and crypto payments by the end of this year. The source said:
“This isn’t just going through the motions to set up cryptocurrency payment solutions at some point in the future – this is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work. It begins with Bitcoin – this is the key first stage of this crypto project, and the directive is coming from the very top…”
By the very top, the source meant that it’s coming from Jeff Bezos himself. Interestingly, the executive added that the project is “pretty much ready to roll” but won’t be just exclusive to Bitcoin. The Amazon executives are currently exploring the possibility of integrating payments for some of the top ten cryptocurrencies.
“Ethereum, Cardano and Bitcoin Cash will be next in line before they bring about eight of the most popular cryptocurrencies online. It won’t take long because the plans are already there, and they have been working on them since 2019”, the source said.
Amazon’s Native Crypto Token
The source added that, in the final stage of the project, Amazon will launch its own native crypto token. In a move towards “tokenization”, Amazon will experiment with crypto payments on its platform. The source noted:
This then becomes a multi-level infrastructure where you can pay for goods and services or earn tokens in a loyalty scheme. There’s little more to it, for now, but you can guarantee the Bitcoin plan will be monitored closely as opportunities with Amazon’s own version of a crypto will be explored.
Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author Bhushan Akolkar Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.