Bitcoin price rallied 13% over past 12 hours to touch $40,000 psychological level. This move came after rumors of Amazon setting up payments in BTC, and other cryptocurrencies spread. While this move is bullish, a minor retracement seems likely after a 36% uptrend over the past six days. Bitcoin price is currently roaming below $40,000 after a retest. A pullback mid-point seems likely after such a massive rally. Such a move will provide buyers to prepare for the next leg of the upswing. One of the world’s largest e-commerce ventures, Amazon is allegedly set to accept payments in Bitcoin, Ethereum, and other cryptocurrencies. This news comes after an insider revealed that this move from Amazon is not a plan to get this done in the future but a “well-discussed, integral part” of how the e-commerce giant will perform in the short-term future. Bitcoin price rallied roughly 37% over the past six days to hit $40,000. While the rumor could have played a role, the current position seems unlikely to last. BTC needs a reset that will allow the buyers to book profit and sidelined investors to get in for the next run-up.

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

The most likely support levels that could support this correction are the 50% Fibonacci retracement level at $34,650 or the 62% Fibonacci retracement level at $33,353. Although unlikely, the 70.5% Fibonacci level at $32,453 could be tagged in a slightly bearish condition.  The rally that emerges from these points might tag the June 15 swing high at $41,327 or $42,478. In a highly bullish case, Bitcoin price might hit $45,376, roughly a 30% upswing from $34,650. Anything beyond this level will be ephemeral and will likely lead to an immediate correction.

BTCUSD D1

Jul 26 2021