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 degree on Jan. 9, carefully mimicking occasions from September 2021. 

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

“Shorters will get rekt” at $40,700

Data from Cointelegraph Markets Pro 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 price conduct at the top of September, when $40,700 acted as a springboard which in the end 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.

“Still consolidating inside its macro Re-Accumulation vary. In truth, $BTC is sort of at the exact same price level at which BTC bottomed on the September retrace.” 

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

As final week, issues centered on crypto markets’ capability 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 property,” markets pundit Holger Zschaepitz argued in a latest Twitter submit.

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

BTC/USD vs. central financial institution stability sheet chart. Source: Holger Zschaepitz/ Twitter

What distinction a 12 months makes

Further similarities got here within the type of BTC/USD precisely matching its place from the identical day one 12 months in the past Saturday. A key distinction, nonetheless, lay in sentiment.

Related: Will this time be completely different? Bitcoin eyes drop to $35K as BTC price paints ‘death cross’

On January 8, 2021, the Crypto Fear & 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.”

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

Crypto Fear & Greed Index. Source: Alternative.me

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