Bitcoin performs classic bounce at $40.7K as BTC price comes full circle from January 2021

2 years ago

The terms whitethorn beryllium the same, but sentiment could hardly beryllium immoderate much different, information shows.

Bitcoin performs classical bounce astatine $40.7K arsenic BTC terms comes afloat ellipse from January 2021

Bitcoin (BTC) bounced disconnected what is for immoderate a cardinal level connected Jan. 9, intimately mimicking events from September 2021.

"Shorters volition get rekt" astatine $40,700

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reversing people astatine astir $40,700 to subsequently walk $42,000.

The behavior, portion uninspiring for some, firmly reminded others of Bitcoin terms behaviour astatine the extremity of September, erstwhile $40,700 acted arsenic a springboard which yet produced $69,000 all-time highs 7 weeks later.

History and Context
40.7k $BTC https://t.co/LqlkxxJ0BF pic.twitter.com/neJlH6mnmN

— Pentoshi DM'S ARE SCAMS (@Pentosh1) January 8, 2022

"Months person passed since September. And yet, BTC finds itself successful the aforesaid situation, macro-wise," trader and expert Rekt Capital commented.

"Still consolidating wrong its macro Re-Accumulation range. In fact, $BTC is astir astatine the precise aforesaid terms constituent astatine which BTC bottomed connected the September retrace."

Macro commentaries regarding stricter economical argumentation from the United States Federal Reserve meantime continued.

As last week, concerns focused connected crypto markets' quality to thrive successful an ambiance without the grade of "easy money" availability, which has characterized the system since March 2020.

"Crypto diehards astir to find retired if it truly was bubble: Rock-bottom rates & trillions of dollars successful CenBank wealth & govt stimmy helped turbocharge prices of integer assets," markets pundit Holger Zschaepitz argued successful a caller Twitter post.

"Can mkt clasp up w/o them? Bitcoin connected people $40k w/flat CenBank equilibrium sheets."

What quality a twelvemonth makes

Further similarities came successful the signifier of BTC/USD precisely matching its presumption from the aforesaid time 1 twelvemonth agone Saturday. A cardinal difference, however, laic successful sentiment.

On January 8, 2021, the Crypto Fear & Greed Index stood astatine 93/100, flashing a informing that a section apical should soon get and that the marketplace had entered "extreme greed."

By contrast, this Saturday scored conscionable 10/100 — 1 of the Index's lowest-ever readings heavy wrong "extreme fear" territory.