Bitcoin performs classic bounce at $40.7K as BTC price comes full circle from January 2021
The price of Bitcoin is back to the $4K mark for the first time in three years after an unexpected bounce that started on Sunday. The world’s largest cryptocurrency by market cap has gone up over 20% as analysts remain divided about whether this could be a sign of things to come or just part of a temporary correction.
Bitcoin has performed a classic bounce at $40.7K as the BTC price comes full circle from January 2021. The 50-day moving average is currently sitting at $3,500 while the 200-day moving average is sitting at $2,000. Read more in detail here: btc 50 200-day moving average chart.
On Jan. 9, Bitcoin (BTC) bounced off a crucial level, strongly resembling occurrences from September 2021.
1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.
At $40,700, “shorters will be rekt.”
BTC/USD reversing direction at roughly $40,700, according to data from Cointelegraph Markets Pro and TradingView, before passing $42,000.
While some found the conduct uninspired, it reminded others of Bitcoin’s price behavior at the end of September, when $40,700 served as a springboard for $69,000 all-time highs seven weeks later.
40.7k $BTC https://t.co/LqlkxxJ0BF pic.twitter.com/neJlH6mnmN History and Context
— January 8, 2022, Pentoshi DM’S ARE SCAMS (@Pentosh1)
“Since September, months have gone. Yet, in terms of macroeconomics, BTC is in the same boat “Rekt Capital, a trader and analyst, made a statement.
“Within its macro Re-Accumulation range, it is still consolidating. In fact, $BTC is almost at the same level as when BTC bottomed out during the September retrace.”
Meanwhile, macro commentary on the US Federal Reserve’s tightening of monetary policy has persisted.
Concerns were raised last week about crypto markets’ potential to survive in an environment devoid of the “cheap money” availability that has defined the economy since March 2020.
“Crypto diehards about to find out if it really was bubble: Rock-bottom rates & trillions of dollars in CenBank money & govt stimmy helped turbocharge prices of digital assets,” markets pundit Holger Zschaepitz argued in a recent Twitter post.
“Can mkt hold up w/o them? Bitcoin on course $40k w/flat CenBank balance sheets.”BTC/USD vs. central bank balance sheet chart. Source: Holger Zschaepitz/ Twitter
How much of a difference does a year make?
Further parallels emerged in the form of BTC/USD precisely mirroring its position from a year ago on Saturday. However, there was a significant variation in mood.
Will things be different this time? Bitcoin is expected to plunge to $35K as the price of the cryptocurrency depicts a ‘death cross.’
On January 8, 2021, the Crypto Fear & Greed Index stood at 93/100, flashing a warning that a local top should soon arrive and that the market had entered “extreme greed.”
This Saturday, on the other hand, earned just 10/100, one of the lowest values in the Index’s history, placing it deep under “severe dread” area.
Crypto Fear & Greed Index. Source: Alternative.me
“The BTC Bulls are becoming nervous. BTC Bears are becoming avaricious. Think about it “Rekt Capital was also introduced.
The “bitcoin movement today” is a classic bounce that has been present for a while. The price of Bitcoin has come full circle from January 2021, and the market seems to be reacting accordingly.
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