Bitcoin price has been on a recovery track as buyers seek to recuperate losses witnessed last week reaching a range low on July 20. On Sunday, Bitcoin reached a high of about $39,800. This is the first time BTC has traded above $39,000 since June 17.
While Amazon’s alleged plans to accept Bitcoin payment helped bolster Sunday’s price rise, on-chain metrics indicate that Bitcoin’s weak immediate support might delay further recovery.
Bitcoin Payments to Be Accepted At Amazon
There are unconfirmed reports that Amazon is seeking to accept bitcoin payments by the end of 2021. According to CoinDesk, an anonymous insider hinted at the retail giant’s plans to enter the crypto payments space. The report claims that Amazon is looking to develop it’s own digital token by the end of 2022.
These news could be part of the reason while Bitcoin price rallied on Sunday and its currently trading in the greed for the sixth day running.
Bitcoin Price Rally Eyes $45,000
At the time pf writing, Bitcoin price teeters around $35,440 as bulls tighten their grip on BTC to sustain the bullish momentum that was started on July 21. On Sunday, the price of the flagship cryptocurrency rose by almost 10% representing the largest daily gain in over a month. Bitcoin price reached a high of around $39,800 on Sunday.
On the daily chart, the pioneer cryptocurrency is battling immediate resistance presented by the 100-day Simple Moving Average (SMA) at $40,700. Note that a daily closure above this level could bolster Bitcoin price bulls towards the $45,000 psychological level.
However, the BTC will have to overcome the resistance at $43,500, the $44,000 psychological level and 200-day SMA at $44,500 before making a kill go at $45,000.
Technical outlook by the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators add credence to this bullish narrative. The RSI’s upward movement into the oversold area shows the bullish momentum is strong.
Moreover, the MACD’s position above the signal line accentuates the bullish narrative.
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Bitcoin Price (BTC/USD) 24-Hour Chart
Looking Over the Fence
On the downside, failure to close the day above the $100-day SMA see BTC take a breather and retract to test the immediate support at $35,100 before the bulls re-group to take Bitcoin Price higher again.
Moreover, on-chain metrics from the In/Out of the Money Around Price (IOMAP) indicator by IntoTheBlock shows that Bitcoin price is sitting on relatively weak support between $34,649 and $36,436. This investors’ cluster has 1.06 million addresses holding only 488,000 BTC.
Bulls have to defend this support zone to abate any BTC price retraction invalidating the bullish narrative.
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Nancy Lubale
