The situation in the cryptocurrency market can change so quickly. They were really bearish for more than two months, particularly in July when sellers were nowhere to be seen. That lasted until last Wednesday, when we saw a quick reversal in Bitcoin, which jumped from below $30,000.

We sold Bitcoin at the 20 daily SMA (gray), which had been providing resistance for more than a month. But the bullish momentum picked up further and buyers pushed the price above the 20 SMA and the 50 SMA (yellow) on the daily chart.

Bitcoin Analysis – BTC/USD Daily Chart

BTC/USD fails at the 100 daily SMA

There were a number of catalysts for this bullish move in BITCOIN and other cryptos, with people like Elon Musk vouching for Dogecoin, while his company, Tesla, is starting to accept Bitcoin again, which has helped improve the sentiment in this market. Large hedge funds are opening Bitcoin/crypto funds, and we have also heard rumours that Amazon is going to start accepting Bitcoin as a means of payment.

As a result, BTC/USD has gained around 40% since last Wednesday, moving above $40,000, but the resistance zone above that level stopped the climb in Bitcoin once again. This time the 100 SMA (green) added strength to the resistance zone, which helped stop the bullish momentum.

Bitcoin Live Chart

But retail giant Amazon denied the reports that it is going to accept Bitcoin for payments, and cryptocurrencies reversed back down. BTC/USD  headed down to $36,500, losing around $4,000, or 10% of its value. That pulled down the whole crypto market with it, but the decline has stopped and cryptos are crawling higher again, with Bitcoin rising around $1,000 higher, after finding support at the 50 SMA (yellow) on the daily chart.

BTC/USD H1 Chart

The 50 SMA held as support for Bitcoin on the H1 chart

So, cryptos have retreated, but they are holding onto most of the gains and slowly moving higher. So, the situation might have changed from the highly bearish momentum of the past two months. But it remains to be seen whether cryptos have resumed the larger bearish trend again, if Bitcoin manages to move above $42,000 soon, as we explained yesterday. If Bitcoin doesn’t move above that resistance area soon, then the bearish trend of the last two months is still on.