Bitcoin price remarkably bounced back following a correction on Tuesday. The retreat from $40,000 to $36,000 occurred barely 24 hours after the bellwether cryptocurrency had rallied from levels around $34,000.
Initially, a report by City A.M said that Amazon was in the process of integrating Bitcoin as a form of payment on the global retail platform. The media cited an unnamed insider who said that the process was almost complete. Moreover, Amazon intended to add other cryptocurrencies like Ethereum and Bitcoin.
However, the retail behemoth released a statement on Tuesday denying any such report. This news sent Bitcoin into a tailspin, where it tested support at $36,000. Other cryptocurrencies bled too, with Ethereum diving toward $2,100 and Ripple retesting support at $0.62.
Bitcoin Price Poised For A Run-up To $44,000
The flagship cryptocurrency is trading marginally above $40,000. Its immediate upside is capped by the 200 Simple Moving Average (SMA). A break above the immediate barriers will likely boost Bitcoin to $44,000 before bulls plan the next run to $48,000.
It is worth mentioning that the path with the slightest resistance is upward, especially with the Moving Average Convergence Divergence (MACD) gaining ground above the mean line. The wide divergence between the 12-day EMA and the 26-day EMA emphasizes the prevailing bullish grip.
BTC/USD four-hour chart
The Relative Strength Index (RSI) holds within the overbought region. On the one hand, this shows that buyers are aggressive and upward price action is intact but on the other, overbought conditions could culminate in a correction as bears battle to bring the price down. Therefore, balancing above $40,000 is key for the uptrend while jumping above the 200 SMA will cement the bulls’ position in the market.
Bitcoin Price Intraday Levels
Spot rate: $40,000
Trend: Bullish
Volatility: Growing
Support: $36,000 and $34,000
Resistance: The 200 SMA and $44,000
Subscribe to our newsletter for free
