Facts:
- Price bounced off the major support despite Amazon denied cryptocurrencies payments rumors
- Tesla conducted no digital asset purchases sales in Q2 despite impairment loss of $23 million on its BTC holdings.
Recommendation:
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appTrade: Long position on Bitcoin at market price
Target: $39,785 and $41,000.
Stop: $33,700
Bitcoin, H4 interval. Source: xStation5
BITCOIN rose sharply during yesterday's session and managed to briefly break above resistance at $40,000 after rumours on Amazon accepting crypto payments hit the market. However, the most popular cryptocurrency pulled back after an Amazon said there are no plans to launch such services in the near future. However, company's spokesperson did not deny that e-commerce giant is researching crypto payments, adding: “We remain focused on exploring what this could look like for customers shopping on Amazon.”
After Amazon dismissed rumored plans to support Bitcoin, prices of major cryptocurrencies have started to retreat, however Tesla’s quarterly announcement eased selling pressure. Tesla revealed loss of $23 million on its BTC holdings however the firm had not sold any more Bitcoin despite Elon Musk’s concern about the leading cryptocurrency’s environmental impact.
Also leading crypto asset manager, Grayscale, recorded an inflow of $2.5 million for the period. Its latest assets under management bulletin reports total assets under management of $33.6 billion as of July 27. Meanwhile Goldman Sachs has revealed in a filing that the firm is looking to create a new fund related to DeFi and blockchain which may indicate a rising interest among institutional investors.
From a technical point of view, buyers manages to halt declines around support at $36,500 which coincides with earlier broken downward trendline. Therefore we recommend taking a long position on Bitcoin at market price with two targets: $39,785 and $41,000. We also recommend placing a stop loss order at $33,700.
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