Bitcoin price surged over $40,000 on Wednesday for the first time since June 16. The world’s most popular cryptocurrenty was trading at $40,094.84 at 1130 hours IST on July 28 on coinmarketcap.com Index. The latest jump came after electric carmaker Tesla’s June quarter earnings showed that it holds $1.3 billion worth of Bitcoin. The world’s oldest cryptocurrency has been on a surge after speculation that Amazon may soon start accepting payments in Bitcoin, Ether and other cryptocurrencies. Bitcoin gained 30% in the last one week, the data from coinmarketcap.com showed.
The sudden rise in the cryptocurrency world could also be a result of traders buying up bitcoin to fill positions they were short on, having bet its value would fall further. “The short squeeze that happened in Bitcoin towards the end of the weekend gave a boost to the entire cryptocurrency market. The past 24 hours saw the markets losing steam and entering a consolidation mode. We saw a massive number of short positions opening up in Bitcoin. However, this is not a bear market currently, as we saw the prices of most cryptos following a tight-range-bound trajectory,” said Edul Patel, co-founder and chief executive officer, Mudrex- A Global Crypto Trading Platform.
“Bitcoin’s Taproot upgrade, which is the most significant upgrade to the Bitcoin network in four years, will happen this year in November. The run-up to the network up-gradation will continue to be a price-discovery mode for BTC. Ethereum 2.0 is also supposed to happen later this year. These are significant events that will shape up the next market cycle for cryptocurrencies. For the short term, we can expect prices to consolidate around current levels,” Patel added.
Elon Musk has always been a driving factor behing the movement in cryptocurrency world. Last week, celebrity chief executive officer said that Tesla might resume accepting payments in Bitcoin soon. “I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50 per cent, and that there is a trend towards increasing that number, and if so, Tesla would resume accepting bitcoin,” Tesla CEO said at Bitcoin conference ‘The B Word’ on July 22. After the conference, Bitcoin was up by 8 per cent and Ether was up by 11 per cent.
The next rise came when Amazon published a job listing mentioning, “The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap.”
“Bitcoin has witnessed an uptrend over the past couple of days as it skyrocketed. The asset finally beat the stiff resistance of $35,000, and since then has rallied upwards. We have also seen volumes build up gradually, as institutional investors seem to be building their positions at these levels. Bitcoin last week did not test the support of $28,800 (Previous Low) and reversed from the weekly low of $29,301,” said ZebPay Trade Desk.
“Technically on the daily time frame, the asset has made a ‘Bullish Engulfing’ pattern and has surged almost by 35% making ‘Higher High Higher Low’ formation. Bitcoin has faced stiff resistance around $40,000 to $42,500 multiple times in the past. Hence to further rally, the prices need to trade and close above $42,500,” ZebPay Trade Desk added.