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




Bitcoin (BTC) returned what for some is a key level on January 9, and mimics events from September 2021.

BTC / USD 1-hour light chart (bit stamp). Source: TradingView

“Shorters will get right” for $ 40,700

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD reversed the price of around $ 40,700 and then passed $ 42,000.

While this behavior was uninspiring for some, the other was reminiscent of Bitcoin pricing behavior in late September, when $ 40,700 served as a springboard that eventually produced the $ 69,000 all-time high seven weeks later.

“Months have passed since September. And yet BTC is in the same situation, macro-wise,” trader and analyst Rekt Capital commented.

“Still consolidating within the macro-accumulation area. In fact, $ BTC is almost at the same price point as BTC bottomed out on the downturn in September.”

Macro comments about stricter economic policies from the US Federal Reserve continued in the meantime.

As last week, the concerns focused on the crypto markets’ ability to thrive in an atmosphere without the scope of “simple money”, which has characterized the economy since March 2020.

“Crypto-diehards in the process of finding out if there really was a bubble: bottom prices and trillions of dollars in CenBank money and government stimulus helped to appreciate digital assets,” said marketing expert Holger Zschaepitz argued in a recent Twitter post.

“Can mkt stand without them? Bitcoin at a rate of $ 40kw / flat CenBank balance. “

BTC / USD vs. central bank balance sheet. Source: Holger Zschaepitz / Twitter

What a difference a year makes

Further similarities came in the form of BTC / USD exactly matching the position from the same day a year ago on Saturday. A key difference, however, lay in the sentiment.

Related: Will this time be different? Bitcoin eyes fall to $ 35K when BTC price paints “death cross”

On January 8, 2021, the Crypto Fear & Greed Index stood at 93/100, giving a warning that a local peak was about to arrive and that the market had entered into “extreme greed”.

On the other hand, this Saturday scored only 10/100 – one of the index’s lowest measurements ever deep within “extreme fear” territory.

Crypto-fear and greed index. Source: Alternative.me

“BTC Bulls get scared. BTC Bears get greedy. Food for thought,” Rekt Capital added.