The price of bitcoin jumped to a six-week high Monday and and hit a six-week high in the process, driven by speculations that Amazon may soon allow customers to make purchases using the world’s biggest cryptocurrency.
Currently(at 6:20 pm), bitcoin was trading at $38,689.19 with a 12.73 per cent rise and a market capitalisation of $721.49 billion, according to cryptocurrency trader coindesk.com. The crypto asset is some 40% lower from its all-time high of $64,804.72.
Citing the reason for the continuous rally of the cryptocurrency, experts opine that reports of retail giant Amazon mulling to accept bitcoin payments by year’s end and minting its own token by 2022 has raised the bar of Bitcoin in the crypto trading market.
According to ZebPay Trade-Desk, Bitcoin has finally managed to beat the stiff resistance of $35,000 and since then has rallied upwards. The crypto exchange said volumes have been building up gradually as institutional investors seem to be building their positions at these levels.
“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,” said ZebPay.
The asset has key supports at $28,800 and $31,000 and may face resistance at $40,000 and $42,500 levels.
Speaking of the surge and if it is a good time to invest, Avinash Shekhar, Co-CEO, ZebPay, said: “We are always bullish on the fundamentals of Bitcoin. Price fluctuations like this are just a sign of an early market and it’ll be stabilized once the market matures. When you look at bitcoin, you are looking at an asset with innovative technologies like triple entry bookkeeping, decentralization, and a public ledger. The best part is that more upgrades are coming to this network to make it more efficient. 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 time frame, these small price fluctuations would be invisible and that’s why we recommend investing in bitcoin for the long run.
