Bitcoin Pushes Higher on Amazon Rumor; Gold Falls Further

Talking Points

- Bitcoin classic is back on track with momentum pushing the coin back towards $6,000 and new record territory as Amazon rumor rumbles on.

- Bitcoin gold continues to be sold off as traders cash in on their free token.

The DailyFX Bitcoin Glossary is designed to provide traders with a reference for important terms and concepts essential for understanding the emerging cryptocurrency universe.

Bitcoin Rallies on Amazon Talk; Coins Diverge as Traders Place Their Bets

The three varieties of crypto-currency Bitcoin are moving in different directions in early trade Thursday with the classic coin (BTC) gearing up for another run at $6,000 and a potential new high. The latest move higher comes after Tuesday’s hard-fork and is driven by traders’ belief that the original coin will remain the dominant token on blockchain. In addition, market rumors continue to swirl around that e-commerce giant Amazon may announce that it will allow payment in Bitcoin at its quarterly earnings today. There is currently an online petition, to be delivered to Amazon CEO Jeff Bezos, asking that Bitcoin and Litecoin (LTC) be accepted as methods of payment as soon as possible.

Looking at the daily chart, the uptrend line from the September 15 low is still intact with the $5,850/5,875 zone the first upside target ahead of a new run at $6,000.

Chart: Bitcoin (BTC) Daily Timeframe (July – October 26, 2017)

Bitcoin cash (BCH) in the meantime is steady around the $330 area while the new gold token (BTG) continues to fall as traders take their free money off the table. BTG was quoted as high as $900 in early trade Tuesday but now trades around $280, according to quotes on YObit.net, although turnover is very limited.

Overnight trade in Bitcoin, a modest $1.7 billion, was dominated by USD, JPY and KRW pairs.

Market Moves/Top 8 Capitalizations – October 26, 2017

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--- Written by Nick Cawley, Analyst.

To contact Nick, email him at nicholas.cawley@ig.com

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