Bitcoin, the king of cryptocurrencies, was trading below $30k just a few days ago. Some of the analysts and BTC Forecast within the community even projected a further crash to the $18k mark. However, in an unexpected turn of events, Bitcoin changed its course and started to recover some of its losses. Bitcoin moved on the upside and gained substantially overnight, partly due to speculation around.
Many believe that Elon Musk’s appearance at the “B-Word” event and his decision to accept Bitcoin for Tesla, and also the possibility of Amazon starting to accept Bitcoin payments in the future caused this recent BTC’s price rise. On the other hand, some experts and critics refute such explanations for Bitcoin’s recent surge above $40,000 through news events, claiming that BTC price swings are largely influenced by technical indicators, patterns, and trends on charts– rather than fundamental events.
Will Amazon Accept Bitcoin Payments?
As a side note, the Amazon-Bitcoin recent story started from here:
Amazon posted a job opening for a digital currency and Blockchain product lead. Four days later, London’s City A.M. newspaper ran a story quoting an “insider” who claimed Amazon was “definitely” preparing to support Bitcoin payments and launch a native token — igniting anticipation for Amazon’s planned crypto plans. However, according to Reuters, on July 27, 2021, Amazon refuted the news, stating that there were no plans to support Bitcoin payments on its platform. However, Amazon’s spokesperson did not deny that Amazon is researching crypto payments, adding, “We remain focused on exploring what this could look like for customers shopping on Amazon.” But the rumor has led to Bitcoin’s price rising above $40,000 for the first time this month, after trading below $30,000 in the previous week. Following this news, Bitcoin surged by 12% in one hour.
Bitcoin rallied and was nearing the $40,000 mark, which is the highest since June. The move to the upside came as a surprise for most of the traders as Bitcoin’s price even managed to break above $48,000 for a brief moment. The price hike has left many analysts hopeful once more. Immediately, Chinese crypto media outlet Wu Blockchain attributed Amazon’s rumored plans to Monday’s BTC surging market, asserting that “Bitcoin rose by 12% in one hour, leading the increase. It is obvious that the price of Bitcoin has started to rise after this rumor about Amazon spread in the Chinese community.” It also has to be mentioned that according to the latest published news, BTC’s price fell 8% as Amazon denied the rumor.
Amazon and Bitcoin
BTC Price Today (27th July 2021)
The cryptocurrency is currently trading at $37,141, still up 26% in the last 7 days. Rumors related to Amazon acted as a catalyzer, driving BTC prices higher. Now, BTC is correcting gains, but it is likely to remain stable near $36,000. The increase compared to last month is about 14%. Nevertheless, the following immediate trading sessions are particularly vital in determining BTC’s further price movements. If prices didn’t remain at the current level, they could again fall back to yesterday’s level of $35,000.
As of today, 2021/07/27, the Bitcoin price sat at 36,947.36 dollars a coin. Today’s range is $36422-$40,499.68. Bitcoin is down 3.25% in the last 24 hours, with a live market cap of $694,367,748,898 and a circulating supply of 18,767,787 BTC coins. Bitcoin reached its highest price on April 14, 2021, when it was trading at $64,816. The lowest price since then was $28,900, and the highest BTC price was $40,503. When BTC’s price neared $35,000 and $36,000, bears displayed weakness and failed to support a compelling decline. According to Coincodex, the BTC Forecast sentiment is currently bullish.
Bitcoin Price Today (27th July 2021)
BTC Performance on July 27, 2021
The price is now settling near the $37,000 support zone. There is also a bullish trend line forming with support near $36,100 and resistance near $31,250 on the hourly chart of the BTC/USD pair.
Bitcoin has finally broken through the $35k resistance level. Earlier, the crypto was stuck in the $30k to $35k range-bound market for quite some time. Currently, the first significant resistance level is near $38,500. The second remarkable resistance level is still near $40,000. In essence, currently, $40,000 is a critical resistance level because Bitcoin has been rejected at this level every time it has tried to climb higher. A successful break and close above the $40,000 level could spark additional gains and more upsides in the future.
If bitcoin does not climb above the $38,000 and $38,500 resistance levels, it will decline. The first support on the downside is near the $36,500 and the $36,000 levels. Still, there is a downside break below the $36,000 support level, and the trend line may push the price towards the $35,000 support zone in the near term. It can affect many things like cloud miner centers.
Daily BTC Forecast for Today, Tomorrow, and the Week
1 BTC to USD Forecast
USD to BTC exchange rate stood at 0.2718 Bitcoins per 10000 Dollars. The change: +0.0035, +1.30%.
BTC to USD Forecast for Today, Tomorrow, and the Week
Source: Ibid.
BTC Forecast Technically: Why So Bullish?
Earlier, we saw that most BTC Forecasts are optimistic and offer bullish sentiments. Moreover, technical analysts agree upon that. In a recent video, well-known analyst Benjamin Cowen expressed his bullish sentiments. While he had mentioned in a video just last week that “we are technically still in a downtrend,” most recently, he opined: “We are very close to breaking the downtrend on the price.”
Key indicators in technical analyses show that BTC has tested the 50-day Simple Moving Average (SMA) for the first time since mid-May. It had earlier been tested in January and March when the line was acting as a support. Since then, after a failed breakout attempt in May, the candlesticks had remained below the line. Additionally, Bitcoin’s 4-hour chart showed a breakout from the downtrend that it had been following since May. Even though Cowen announced that this does not mean that the coin will shoot straight back up to $60k, it gives bulls a fighting chance. Furthermore, the 20-day EMA has started to turn up, indicating another advantage for the bulls.
Source: YouTube, Benjamin Cowen
In a similar vein, the chart above shows that the bulls were at their strongest position in January when the coin was highly overbought. Since then, the Relative Strength Index (RSI) has been in a straight downtrend as sell-side pressure continued to dominate. However, this trend reversed recently when the indicator broke through the trend line, after almost seven months. The relative strength index (RSI) has risen close to the overbought territory, indicating that bulls have the upper hand. This renewed buy-side pressure may do some good for the coin and signal a price recovery. These indicators are positive signs for bringing confidence back to the bulls.
According to Cowen, “what matters most” was breaking through the 20-week SMA, which was at a far-away $45k. He further explained, “We are still well away from the 20-week SMA. Remember, for us to get super bullish again about a six-figure bitcoin, what we would like to see would be for Bitcoin to go above the SMA, come back down, test it as support and then go up.” Therefore, it would be prudent that traders play safe and wait for BTC to approach a solid support level before placing any long trades.
According to Vijay Ayyar, a technical analyst: Bitcoin’s current price volatility is part of a broader multi-wave correction since hitting a record in April. He predicts that BTC’s price could rise as high as $45,000 in the near term; before another drop to complete the correction. “We are still seeing the correction play out,” he said.
Also, Mr. Sotiruou explained: “Bitcoin needs to recover the range high of $42,000 (£30,389.10) approximately to be technically bullish.”
In his latest analysis, McGlone – Bloomberg intelligence senior commodity strategist- said that the probability of Bitcoin hitting $60,000 is greater than the price drop to $20,000.
Source: CoinMarketCap
Other experts point to Bitcoin potentially being at the end of wave 4 of a five-wave Elliot cycle, which began at the bottom of the last bear market. Wave 3 is the $64,000 all-time-high, while wave 4 is the correcting wave. Wave 5 is still to come and would take us past the previous all-time-high and on to a new market top.
Several Key Factors Affecting BTC Forecast in the Short and Long terms
BTC’s price may be affected by many factors, including:
- Supply and demand
- Competition; Do not forget that hundreds of digital currencies are competing with Bitcoin by providing more profitable opportunities for investors.
- Fundamental events like Bitcoin halvings
- Regulations, China keeps a tight grip on Bitcoin cloud mining. According to local media reports this week, the State Grid Corporation of China demanded a ban on cryptocurrency mining, explaining it by the general lack of electricity in the country. Currently, 90% of mining companies have completed their business in China, a number that may increase in the future.
- For instance, the latest Gallup poll shows that the number of investors who own Bitcoin has tripled since 2018. U.S. investors are showing increasing interest in the coin. From 2% in 2018 to 6% in 2021, the number of investors has tripled. Sentiments towards digital assets have turned more positive in the past three years. The percentage of investors who considered BTC “very risky” in 2018 was 75%, now that number is down to 60%.
- Cryptocurrency exchanges like Binance, ConEx, Luno and, etc hacks.
- Other real-world and fundamental events such as news, media coverage, even rumors. For instance, one driving factor in Bitcoin’s recent resurgence after months of uncertainty was partly due to news suggesting that Amazon intends to start accepting BTC payments. Similarly, earlier this year, Elon Musk announced Tesla would stop accepting BTC. The news negatively affected the crypto industry. As a result, Bitcoin reached a new low of $28,814.75 (£20,848.91) on June 22, 2021, and lingered below $30,000 before rebounding in recent weeks.
- Mining and its related problems affect BTC’s price value.
BTC Forecast: Conclusion
Based on historical analyses, Bitcoin has been in a bear market every other week since April 2021. However, BTC technical forecasts indicate that the bull run has just begun, and there is a chance of much sunnier days for bulls ahead. In addition to BTC’s bullish technical analyses, BTC Forecasts – discussed earlier– are also extremely optimistic. Amidst the bullish news and sentiment, Bitcoin must break away from its current resistance levels, namely the $40,000 resistance level. In other words, now BTC shows positive signs and it can rally further above $40k. Most experts and analysts say it will only go higher from here on out. Nonetheless, the price direction is yet unclear but could continue to move higher if the bulls remain confident enough. If buyers succeed, the BTC/USDT pair could attract further buying, clearing the path for higher price milestones.
BTC positive signs
However, Bitcoin will need several attempts to consolidate and form support at a higher low. Bitcoin has to get out of the $30,000–$40,000 range it has been locked in for two months. Maintaining Bitcoin above the $40,000 level would signal that the bearish market is over, and the bullish one may resume. If Bitcoin manages to maintain its current strength, as many expect, Bitcoin can get back on track with the Stock to Flow model and reach the $100,000 mark by the end of the year. Therefore, overconfidence is not warranted at this time since several bearish threats remain valid. Thus, a more cautious approach is advisable for the weeks ahead.
Bitcoin’s all-time high is $64,829.14 (£46,907.12) that it reached in mid-April 2021. Only time will tell for sure whether the cryptocurrency can rebound to reach and cross those levels again or not? Do not forget that many other intervening factors may affect BTC’s prices positively or negatively in the market (that we referred only to some of these above). And if you are willing to become a seasoned investor, you need to keep a vigilant eye on them to read the market correctly and succeed.
