Bitcoin Gets Bumped Up but not Pumped Up

How After yesterday’s tremendous rise in Bitcoin and Bitcoin futures, today BTC gave up about half of Monday’s gains, and currently, as of 2 PM Eastern Standard Time, the most active August contract of BTC futures is trading down a little over 4% or $1625 on the day at $37,835.

The description in the posting was worded in a way that had many believing that the juggernaut of e-commerce was looking into accepting cryptocurrency as a payment option in the future. This belief was enough to shift market sentiment, which at the time was extremely bearish. The result was the liquidation of over $950 million worth of crypto shorts which was enough to propel Bitcoin above $40,000 intraday on Monday.

The optimism was squelched when an Amazon spokesperson denied that the company would accept Bitcoin as a payment option this year. This brought pricing well off of the highs, but the statement did not state that Bitcoin wouldn’t be accepted in the following year or that another crypto isn’t being considered for a possible sooner integration. Nonetheless, when the announcement was made at around 4 PM Eastern Standard Time, Bitcoin’s price fell from its highs at around $40,000 down to approximately $37,750 in a single hour.

On a technical basis, BTC futures still remain within the downward channel it has followed since the all-time highs in April. However, a few levels of resistance have now become areas of possible support. This includes the 50 and 200-day moving averages as well as the 2.618 Fibonacci extension at $33,000. As well as the current support level at the 50% retracement residing at $36,500. The volume levels in BTC had a dramatic spike today, giving the above-mentioned areas of support more validity.

Resistance remains at $40,000, and the ultimate support level at the 61.8% retracement of $29,750 has remained intact.