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

Bitcoin
(BTC)
bounced
off
what
is
for
some
a
key
level
on
Jan.
9,
closely
mimicking
events
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
 showed
BTC/USD
reversing
course
at
around
$40,700
to
subsequently
pass
$42,000.

The
behavior,
while
uninspiring
for
some,
firmly
reminded
others
of
Bitcoin
price
behavior
at
the
end
of
September,
when
$40,700
acted
as
a
springboard
which
ultimately
produced
$69,000
all-time
highs
seven
weeks
later.

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

commented
.

“Still
consolidating
inside
its
macro
Re-Accumulation
range.
In
fact,
$BTC
is
almost
at
the
very
same
price
point
at
which
BTC
bottomed
on
the
September
retrace.” 

Macro
commentaries
regarding
stricter
economic
policy
from
the
United
States
Federal
Reserve
meanwhile
continued.

As

last
week
,
concerns
focused
on
crypto
markets’
ability
to
thrive
in
an
atmosphere
without
the
extent
of
“easy
money”
availability,
which
has
characterized
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

What
difference
a
year
makes

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



Related: Will
this
time
be
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
local
top
should
soon
arrive
and
that
the
market
had
entered
“extreme
greed.”

By
contrast,
this
Saturday
scored
just
10/100

one
of
the
Index’s
lowest-ever
readings
deep
within
“extreme
fear”
territory.


Crypto
Fear
&
Greed
Index.
Source:
Alternative.me

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

added
.

read original article here