In the last 24 hours, Bitcoin experienced a price surge. However, the upward movement was rejected at the $40K level. This is taken as the new resistance level for the flagship cryptocurrency. The bears are trying to ensure to retract the beacon coin market, but the bulls are also pushing on the opposite side. After this tug of war between two market sections, Bitcoin is trading at $38.73 with 4.74% intraday gains.
The biggest influencer that pushed Bitcoin prices back into a bullish market was the Amazon rumor. A British news outlet cited two anonymous sources claiming that Amazon is planning to invest in the virtual currency market. There were other factors like the FUD created by Tether and leveraged trading collapse. Under such conditions, Bitcoin continued to travel skyward.
The technical analysts in the market pointed out a set of indices that predicted the revival of the bullish streak. The RSI or Relative Strength Index is used to measure the tendency of stock market commodities based on their ending costs. In the last weekend, Bitcoin managed to break out of the downward trajectory for the first time since June.
Another proof of bullish return was pointed out by crypto analyst Scott Melker. Melker used Bollinger Bands that are used to characterize the volatility for an asset class over a specified period. He claimed that these bands were tight from December 2020 to April 2021 that caused volatility. Melker claims that the recent opening of these Bollinger Band readings for Bitcoin is a highly bullish signal.
The market sentiment and fundamentals have always made a huge impact on the Bitcoin price mark. When the firstborn cryptocurrency is going up, it is usually followed by a positive market sentiment reading. Things got off track when weighted sentiment on Twitter witnessed a sharp decline after Amazon denied all Bitcoin rumors. The social sentiment for Bitcoin went to the lowest level in 6 months.
The data projections shared by Bybit show that the funding rate for Bitcoin is mostly negative or neutral at best. Bears translate this into claiming that the number of short positions is rising. Despite the recent $30K breakthrough, Bitcoin needs more time to see a true bull reversal. If the header crypto manages to break out of the $40K mark and stays at the $42K price point over the weekend, it can change its course.