Bitcoin experienced a remarkable short squeeze on Sunday evening, surging from $34,000 to as high as $40,000 as reports suggest that Amazon may accept cryptocurrencies as a form of payment.
At the time of writing, the world’s largest cryptocurrency was trading at $38,150 as it confirms a breakout above the $36,500 and $37,600 levels of resistance.
A grand total of $900 million in short positions were liquidated across all derivative exchanges, with Binance futures suffering a shocking liquidation cascade all the way up to $48,000.
In the short term, Bitcoin is now faced with the daunting prospect of the daily 200 exponential moving average, which has not been tested since the gruelling death cross on June 23.
A daily close above that level would signal a period of continuation for Bitcoin and the wider cryptocurrency market, although it’s worth noting that the healthiest course of action would be a pull back to re-test the $36,500 level of resistance as support.
If price does slide back through $36,500, Bitcoin is expected to re-trace the majority of the move with downside targets emerging at $35,300 and $34,800.
It is also expected to be a pivotal week in traditional markets, with several of the top companies including Tesla, MicroStrategy and Amazon releasing Q2 quarterly earnings reports.
Nasdaq futures has started the day slightly down, showing an inverse correlation to Bitcoin for the first time in many months.
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In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.
The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On January 3 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.