- Bitcoin price rallied roughly 13% over the past 12 hours to tag the $40,000 psychological level.
- This move comes 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 hovering below $40,000 after a retest. A pullback to the range’s mid-point seems likely after such a massive rally. Such a move will provide buyers a breather to recuperate and prepare for the next leg of the upswing.
Amazon prepares for Bitcoin payments
One of the world’s largest e-commerce behemoths, 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.
Reportedly, this decision came straight from the world’s richest man and Amazon’s founder - Jeff Bezos. While Bitcoin will be the first cryptocurrency Amazon might accept, Ethereum, Cardano, and Bitcoin will be next in line.
The news of this seems to have caught on during the Asian session, which has responded positively, pushing Bitcoin price to $40,000. This development comes after Amazon was looking to hire digital currency and blockchain experts a few days ago.
Regardless of the rumors, Bitcoin price seems to have rallied exponentially. The technicals indicate that a pullback seems likely after such a run-up.
Bitcoin price needs to correct
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.
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.
BTC/USDT 12-hour chart
On the other hand, a breakdown of the 79% Fibonacci retracement level at $31,517 might invalidate the bullish thesis and trigger a 7% sell-off to the range low at $29,249.
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