The Bitcoin price has jumped to a 4-week high on reports the tech giant will start accepting BTC before the end of the year.
Bitcoin (BTC) is trading at $36,341, higher by $1,616 (+4.67%).
A wave of optimism is sweeping across the cryptocurrency market this weekend as bulls delight in the news the world’s fourth-largest company is closing in.
An unnamed employee at retail behemoth Amazon (NASDAQ: AMZN) told City AM, the project is “ready to roll”.
“It begins with Bitcoin – this is the key first stage of this crypto project, and the directive is coming from the very top… Jeff Bezos himself.”
Furthermore, the company has set its sights on more than just BTC.
“Ethereum, Cardano and Bitcoin Cash will be next in line before they bring about eight of the most popular cryptocurrencies online.”
The news has sparked a surge of panic buying as desperate investors rush into cryptos.
After weeks of lethargy, the Bitcoin price looks set to explode. So is the Bitcoin bull market back, and if so, just how high can BTC go?
The daily chart shows BTC has finally recaptured the 50-day moving average at $34,415 for the first time since May. Furthermore, the Bitcoin price is on its way towards the top end of its recent range.
Since the May 19th crash, BTC has traded in a broad $28,700-$41,000 channel. As recently as last week, BTC was nudging the lower end of this channel and changing hands below $30,000. This led many analysts to predict, BTC was on a path to $20,000.
However, as I wrote in my report on the 19th;
Just as the market becomes most bullish at the top, the reverse is often true.
The logical destination for the Bitcoin price is the 100 DMA at $40,860, which also marks the top of the two-month range and therefore offers a robust level of resistance.
Should the buying momentum take BTC beyond $40,100, the bulls will target the 200 DMA at $44,697. And if the price advances beyond the 200 DMA, there is a strong argument for a return to the all-time high at $65,000.
However, until BTC clears $41,000, the range is still dominant. And in the event the rally reverses below the 50 DMA, $30,000 is back on the table.
Although considering the magnitude of the news, the bulls look likely victors.
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