The past couple of days were particularly turbulent in the cryptocurrency market. This was largely propelled by Bitcoin’s rally, as the cryptocurrency managed to surge as high as $40,580 yesterday, before tumbling to where it’s currently trading at around $37,300.
Bitcoin Price Pulls Back Following Amazon’s Statement
Over the past few days, Bitcoin is on an impressive streak. From the lows at around $29K to yesterday’s high at $40,580, BTC was up almost 40% in six days. This was propelled by quite a few things.
Technical indicators aligned perfectly with bullish on-chain data, producing a considerable increase. In turn, the initial leg up also caused a string of a massive liquidation of BTC short positions (a.k.a a short squeeze). It saw millions worth of shorts being squeezed out, cascading the effect and pushing the price further to the upside.
Another potential reason for the surge was the fact that reports started circulating, indicating that Amazon has plans of accepting Bitcoin this year. However, the company went out and officially denied these rumors, saying that there’s no such thing and they do not, in fact, intend to accept BTC this year.
Since then, bitcoin’s price started declining. At the time of this writing, it’s trading at around $37,300, down about 2% in the past 24 hours.
Altcoins Follow: Market Goes Red
To no surprise, the entire market took a beating alongside Bitcoin.
It’s worth noting, though, that the BTC dominance index has increased slightly in the past 24 hours, revealing that altcoins, in fact, had it worse. This is how the market looks like over the past day of trading:
As seen, the predominent color is red as all the cryptocurrenices are charting declines to a certain degree.
Ethereum (ETH) is down about 5%, BNB – 4%, ADA – 6.8%, DOGE – almost 9%, and so forth. In any case, it’s also important to keep in mind the overall increase over the past week, as a lot of the cryptocurrencies, despite the current losses, have managed to reclaim important technical levels on their way to recovery.