Bitcoin price rises to $ 40,000 – here are four reasons

According to crypto analysts, the Bitcoin rally will take place on Monday at Amazon.com Inc. It wasn’t just ads asking for help.

An ad looking for “Leads in Digital Currencies and Blockchain Products” rolled the ball as it raised expectations that e-commerce and cloud computing giants would soon be accepting Bitcoin for payments. I got a review. That topic was heightened after London financial news organization City AM quoted the unnamed Amazon.
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Officials said the company is considering doing just that by the end of the year.

Amazon denied the report. “Despite our interest in space, the speculation about our special plans for cryptocurrencies is not true. Find out what that looks like for customers who shop on Amazon. We will continue to focus on that. “

Looking for: Bitcoin is rising as Amazon searches for crypto leads

Bitcoin
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For the first time since mid-June, afternoon trading passed the $ 40,000 mark, according to FactSet. It traded at a high of $ 40,581.30, topping the $ 40,000 mark for the first time since mid-June.

Squeeze game?

According to analysts, the short cover of investors who bet on Bitcoin prices and continued to lower their clearing positions seemed part of the bigger picture. Short covers can be added to the rally as bad investors buy bitcoin and scramble to close their positions.

“According to Skew data, almost $ 800 million in BTC short positions were liquidated on Sunday night,” wrote a Fundstrat analyst. Data from Bybt.com Over $ 717 million of Bitcoin positions were liquidated in the 12-hour period ending at 12:00 PM EST on Monday, suggesting that nearly $ 721 million was in short cover.

Some analysts believed the positioning statement regarding rallies was more reliable than Amazon’s performance. Michael Hewson, chief market analyst at CMC Markets, said the move “may demonstrate the agile nature of positioning in the crypto space as Amazon’s adoption of cryptography may be a long way off. I shall. “

Technical breakout

ThinkMarkets analyst Fawad Razaqzada said in a statement Monday that the rally could have technical momentum.

“Prices have been rising for weeks, and when we finally crossed the bearish trendline a few days ago, we saw some consecutive ‘green’ or in my case white candles,” he said. .. Candlestick Analysis. In particular, he focused on candles marking sessions with closing prices higher than opening prices (see chart below).

“It is clear that some speculators, relying on price behavior, must have decided that the time is right to reconnect,” Razaqzada wrote.

He said the “big resistance” of about $ 40,000, which is the shaded area of ​​the chart, remains intact for now. “To bring the bias back to the full uptrend, we need a ‘clean break’ in this zone,” he said. “Traders need to be more careful as this can be exposed.” Warned. Short term peaks. “

In anticipation of Tesla

Razaqzada and other analysts pointed out last week that crypto is after Tesla Inc.
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CEO Elon Musk appeared in a panel discussion with Twitter CEO Jack Dorsey.
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And Square Inc.
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And Cathie Wood, CEO of ARK Invest.

read: Bitcoin rises as Elon Musk says, “I can pump but I won’t cant.”

Tesla holds a stake in Bitcoin to announce quarterly results after the closing bell on Monday.

“Are there any pre-emptive purchases ahead of Tesla’s win today?” Asked Razaqzada. “Some speculators may expect comments on cryptocurrency from Tesla CEO Elon Musk or his team when electric car manufacturers announce quarterly results after the market closes tonight. So be aware of this possibility. “

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