Over the past few days, speculators have taken over the market, and this is justified because of the strong information flow.
Let's start analyzing the flight with insider information about Amazon's plans to implement a system for accepting payments in cryptocurrency by the end of this year. This falls under the flash news category since we are dealing with an e-commerce giant and its volume can do a lot. Naturally, cryptocurrencies (Bitcoin & Ethereum) flew 15% to such news, inspiring even the most pessimistic traders. The joy was short-lived, the news was denied by Amazon itself that they are showing an interest in cryptocurrency, but the company has no specific plans for cryptocurrencies.
At this stage, a flurry of sellers arose, where bitcoin and ethereum plummeted by about 11%.
In this whole burning story, it is interesting that even during the past week, Amazon opened a job posting for a product manager in the field of digital currencies and blockchain.
In simple words, the story about the insider may actually be a fact, but Amazon just can't advertise this fact in vain yet, so it denies it.
The interest in cryptocurrencies is undeniable, this proves the wide interest in digital assets among qualified market participants, but progress will not end there, and perhaps in the near future we will see the use of cryptocurrencies in everyday life.
Another interesting news is the appeal of Twitter CEO Jack Dorsey to investors, where he stressed that bitcoin will be a big part of the company's future, as he sees opportunities for integrating cryptocurrency into existing Twitter products and services, including trade, subscriptions and other new additions, such as Twitter Tip Jar and Super Follows.
It seems like something truly grandiose is happening behind the scenes, and soon the cryptocurrency will acquire an even stronger foundation.
What is happening on the Bitcoin and Ethereum trading charts?
After a rapid growth, bitcoin quotes reached the $40,000 area, where there was a decrease in the volume of long positions and correction by 10%. In terms of market cycles, strong price changes are observed that have not been seen in a long time. Analyze the change in the quotes along the upward trajectory over the past months and you will see that a similar movement was last observed in early spring.
In simple terms, the cycles from July 20 to July 26 reminds of bullish interest, despite a bearish market. This creates a resonance, is there a reversal signal?
This question is now facing many trailers and the market as a whole, but in order not to rush to conclusions, many traders are waiting for the price to hold above the $43,000 mark, which, quite possibly, will indicate a reversal.
Ethereum, following bitcoin, is showing increased upward interest, strengthening its position by about 40% in the peak from July 20 to July 26. The maximum level is considered to be at 2,433, after which a pullback of 11.5% occurred.
Please note that the reduction in the volume of long positions occurred in the area of the local high on July 7, where a price reversal occurred in history.
In this situation, many traders will monitor the $2,400 / $2,450 price area for a breakout, since if the price is kept higher, the path towards the psychological mark of $3,000 will open for us.
Summarizing all of the above, the market is dominated by a positive background, which in the long term may change the bearish interest in the market.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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