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

Bitcoin (BTC), which bounced off of what was for many a key level Jan. 9, closely following events from September 2021.

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

“Shorters will get Rekt” at $40,000.

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD reversed course at $40,700 and then passed $42,000.

While the behavior was not inspiring for many, it reminded others of Bitcoin’s September price behavior when $40,700 served as a springboard that eventually produced $69,000 all time highs seven 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 have passed from September. Yet, BTC is in the same position macro-wise,” Rekt Capital analyst and trader commented.

“Still consolidating within its macro Re-Accumulation area. Actually, $BTC is at almost the exact same price point as when BTC reached its September bottom.

In the meantime, macro commentaries on stricter economic policies by the United States Federal Reserve continued.

Last week’s concerns were similar to last week. They focused on the ability of crypto markets to thrive in an environment without easy money availability. This has been the economic norm since March 2020.

In a tweet, Holger Zschaepitz stated that crypto diehards are about to discover if it was a bubble. “Rock-bottom rates and trillions of dollars CenBank money & government stimmy helped turbocharge the prices of digital assets.”

“Can mkt withstand them?” Bitcoin course $40k with flat CenBank balances

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

What a difference a year can make

BTC/USD was also identical to its position one year ago on Saturday. The key difference was in the sentiment.

Related: Will this be different this time? Bitcoin price drops to $35K, as Bitcoin eyeballs drop to $35K

The Crypto Fear & Greed Index was at 93/100 on January 8, 2021. This indicated that a local top would soon arrive and that the market has entered “extreme greed”.

This Saturday, however, scored only 10/100 — one the Index’s lowest ever readings deep in “extreme fear” territory.

Crypto Fear & Greed Index. Source: Alternative.me

“BTC Bulls are becoming fearful. BTC Bears are becoming greedy. Rekt Capital also added: “Food for thought.”

https://cointelegraph.com/news/bitcoin-performs-classic-bounce-at-40-7k-as-btc-price-comes-full-circle-from-january-2021