Cryptocurrency Analysis

[IFX_Selena]

Amazon may start accepting payments in bitcoins



The sharp increase of bitcoin's quotes is clearly visible on the 4-hour timeframe. Just a few hours ago, it became known what triggered the strong growth of bitcoin. The thing is that the list of positive statements for bitcoin was intercepted by Jeff Bezos, who said that by the end of 2021, his company Amazon may start accepting payments in bitcoins, and it may have its own cryptocurrency in 2022. To be more precise, Jeff Bezos himself has nothing to do with it, since this information is from an insider. The source is not named, but it is reported that he is very familiar with the company's plans. It also became known that Amazon is currently looking for a specialist in cryptocurrencies and blockchain technology to join its staff. The insider reports that the introduction of payment in bitcoins is just the beginning, the very top of the cryptocurrency project that Amazon is planning. It is also reported that not only Bitcoin will be integrated into the Amazon payment system. Ethereum, Cardano, and Bitcoin Cash must also be connected.

Thus, for the second day in a row, the market has been reacting to news of a purely verbal nature and is far from always confirmed. For example, Elon Musk's statement that Tesla can accept payments in bitcoins again caused a new growth of bitcoin, but market participants can't help but remember that Tesla has already accepted payments in cryptocurrency exactly one month ago. The head of Ark Invest, Cathie Wood, made many compliments to bitcoin and said that residents of the whole planet will now be able to make payments anywhere in the world, even where there are no banks. Jack Dorsey, the head of Twitter, believes that bitcoin will become the global currency of the whole world. Now, Amazon's plans have been revealed. But all this information cannot be considered more important than, for example, the actions of the Chinese authorities or the potential tightening of regulation of the cryptocurrency sphere in the United States. From our point of view, bitcoin has risen in price again solely on the joyful expectations of investors that now bitcoin will start growing again and very soon it will cost $100,000.



Technically, on the 4-hour timeframe, bitcoin quotes have started a new upward trend inside the side channel of $29,700 - $40,700. And at the moment, we have already practically worked out the upper limit of this channel, to which only about $1,000 remains to pass. Thus, it is around the level of $40,700 that the future fate of the cryptocurrency will be decided. We believe that after such a strong growth, which is not too justified by fundamental factors, a new decline to the level of $29,700 will follow. But in the case of overcoming $40,700, the upward movement may continue, and traders will be able to buy bitcoin with a target of $43,852.





Paolo Greco
Analytical expert
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