There was a short-lived optimism in the bull market after the price of Bitcoin went above the price of $40,000 for the very first time in over 6 weeks. The rally of the cryptocurrency on Monday was around $40,581- which was simply a continuation of the breakout on Sunday which saw the price of BTC go up to $48,110 on Binance.
This came sometime after a short squeeze resulted in the liquidation of almost $500 million shorts in under two minutes. However, the price of the cryptocurrency has again gone on a free-fall now.
According to data received from TradingView and Cointelegraph Markets Pro, there was a distinct spike in Bitcoin to an intraday high of about $40.581 on Monday, before the price went down to $37,500. This resulted in market bulls looking towards flipping the zone of resistance back in order to support a movement in the upward trajectory.
Although it is ascertained that an upward movement would definitely have the mark of a change in trend- something which has prompted quite a few analysts into proclaiming that the bullish market is back on track- several experts don’t see eye to eye with this assumption.
Bitcoin Factors that could reignite the bull market
As stated by the partner of ExoAlpha, Elie Le Rest, there could be a change in the cryptocurrency sector owing to Amazon denying rumors that it would be accepting any form of cryptocurrency payments. It would also be quite similar to the effect that PayPal had when it revealed that it would be accepting cryptocurrencies- especially Bitcoin. Le Rest has stated that if the rumors of Amazon come out as the truth, it could very well lead to a bull run in H2 of 2021.
With the price of Bitcoin trying to exceed the resistance level of $35,000 on Sunday, there have been almost a billion dollars, in short, that got liquidated over the last day. The move in the current market could be sustained if a more directional trend comes from cryptocurrency.