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

Bitcoin (BTC) bounced off what’s for some a key stage on Jan. 9, carefully mimicking occasions from September 2021. 

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

“Shorters will get rekt” at $40,700

Information from Cointelegraph Markets Professional and TradingView confirmed BTC/USD reversing course at round $40,700 to subsequently move $42,000.

The conduct, whereas uninspiring for some, firmly reminded others of Bitcoin value conduct on the finish of September, when $40,700 acted as a springboard which finally produced $69,000 all-time highs seven weeks later.

“Months have handed since September. And but, BTC finds itself in the identical scenario, macro-wise,” dealer and analyst Rekt Capital commented.

“Nonetheless consolidating inside its macro Re-Accumulation vary. In reality, $BTC is nearly at the exact same value level at which BTC bottomed on the September retrace.” 

Macro commentaries concerning stricter financial coverage from the USA Federal Reserve in the meantime continued.

As final week, issues centered on crypto markets’ skill to thrive in an environment with out the extent of “simple cash” availability, which has characterised the financial system since March 2020.

“Crypto diehards about to search out out if it actually was bubble: Rock-bottom charges & trillions of {dollars} in CenBank cash & govt stimmy helped turbocharge costs of digital belongings,” markets pundit Holger Zschaepitz argued in a current Twitter put up.

“Can mkt maintain up w/o them? Bitcoin on track $40k w/flat CenBank steadiness sheets.”

BTC/USD vs. central financial institution steadiness sheet chart. Supply: Holger Zschaepitz/ Twitter

What distinction a yr makes

Additional similarities got here within the type of BTC/USD precisely matching its place from the identical day one yr in the past Saturday. A key distinction, nonetheless, lay in sentiment.

Associated: Will this time be totally different? Bitcoin eyes drop to $35K as BTC value paints ‘demise cross’

On January 8, 2021, the Crypto Concern & Greed Index stood at 93/100, flashing a warning {that a} native prime ought to quickly arrive and that the market had entered “excessive greed.”

In contrast, this Saturday scored simply 10/100 — one of many Index’s lowest-ever readings deep inside “excessive concern” territory.

Crypto Concern & Greed Index. Supply:

“BTC Bulls are getting fearful. BTC Bears are getting grasping. Meals for thought,” Rekt Capital added.