Bitcoin makes a push towards $40,000; will the rally continue?

Bitcoin makes a push towards $40,000; will the rally continue?


Bitcoin staged a strong rally on Monday with the cryptocurrency coming within a $360 distance from the $40,000 level. The surge was fueled by speculation that Amazon may soon allow its users to make payments in Bitcoin and its peers. The biggest and most popular cryptocurrency surged as much as 15.96 percent to touch $39,639.9, the highest level recorded since June 16.

Amazon recently posted a job listing seeking an experienced product leader to develop its Digital Currency and Blockchain strategy and product roadmap.

“You will leverage your domain expertise in Blockchain, Distributed Ledger, Central Bank Digital Currencies and Cryptocurrency to develop the case for the capabilities which should be developed, drive the overall vision and product strategy, and gain leadership buy-in and investment for new capabilities,” according to the listing.

Also read: Mexican billionaire Salinas says his banking business may embrace bitcoin

The development comes at a time when Bitcoin is recovering from a sharp selloff, triggered by a crackdown on cryptocurrencies by regulators, after registering an all-time peak in April this year.

“If true, Amazon would join the likes of Tesla and Twitter in being bullish on crypto assets such as Bitcoin being the preferred mode of payment in the future,” said a CoinDCX spokesperson.

Having bounced back sharply from the key support level of $30,000, Bitcoin has seen a strong price surge over the weekend driven by renewed optimism on the cryptocurrency gaining traction as a legal tender, the spokesperson added.

Also read: Crypto prices surge after Elon Musk says ‘I might pump, but I don’t dump’

While Amazon has not officially announced any plans to accept digital currencies, such an announcement will further fuel the rally. Statements from Tesla CEO Elon Musk, Twitter CEO Jack Dorsey and ARK Invest CEO Cathie Wood at the B Word Conference have also boosted the bullish sentiments.

In the long term, Bitcoin’s price will depend on new developments on its wider acceptance by larger players.

In April, Bitcoin had clocked an all-time high after the news of major adoption of the digital currency by companies like Paypal and Tesla, and investment banks.

However, Tesla’s announcement that it would suspend vehicle purchases using Bitcoin played spoilsport, dragging the cryptocurrency lower. Price pressures were further exacerbated by China’s crackdown on cryptocurrencies and mining operations within its borders.

Also read: Turning the tide: Is Bitcoin’s bear run coming to an end?

In the short term, however, BTC has taken out its 50-day moving average (MA) resistance, placed at $35,000, and is expected to rise further. Concerns over inflation in several economies have boosted the appeal of Bitcoin and other digital currencies as a safe haven bet. Bitcoin is expected to meet resistance next at $40,000 and $42,500 levels.

The latest rally in Bitcoin also boosted other popular cryptocurrencies such as Ethereum. Ethereum – also known as Ether – in particular, jumped as much as 12.08 percent.

The latest rally in Bitcoin comes just days after a massive selloff in Bitcoin that dragged the virtual currency below the $30,000 mark. However, even at those levels, Bitcoin remains positive compared with levels seen the previous year.

Also read: Cryptocurrency bank Cashaa to launch banking operations in India: Report

In the past few days, Bitcoin has gradually recovered some ground after its recent selloff. Investors have revived bullish sentiments in the crypto-verse. The bounce in Bitcoin brings some good news for the turbulent world of cryptocurrencies that has seen many ups and downs this year.

“When we say we are bullish on Bitcoin, we are looking at the future potential of this asset and the strong fundamentals it holds. Also, if you look at the larger timeframe, these small price fluctuations would be invisible and that’s why we recommend investing in Bitcoin for the long run,” said Avinash Shekhar, co-CEO of ZebPay.


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