The cryptocurrency market has been extremely volatile over the past few days. This was due to Bitcoin’s rally. Yesterday, the cryptocurrency soared to $40,580 before plummeting to $37,300.After Amazon’s Statement, Bitcoin Price Recovers
Bitcoin has been on an incredible streak over the last few days. BTC rose almost 40% between the $29K lows and yesterday’s high of $40,580. This was in just six days. Many factors contributed to this increase.
Technical indicators aligned perfectly with bullish on-chain data, producing a considerable increase. The initial leg up led to a string of massive short-position liquidations of BTC (also known as a short squeeze). It saw the millions worth of shorts being squeezed out, cascading the effect and pushing the price further to the upside.
The fact that Amazon plans to accept Bitcoin in the new year was another reason that could explain the increase. 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.
Bitcoin’s value has been declining since then. It’s currently trading at $37,300 as of the writing of this article, down about 2.2% over the last 24 hours.
Ethereum (ETH), is down about 5%; BNB – 4%; ADA – 6.8%; DOGE – almost 9% and so on. It’s important to remember that many cryptocurrencies have reclaimed important technical levels despite their losses.