Cryptocurrency

With the full recovery of BTC prices in January 2021, Bitcoin performed a classic rebound with US$40,700

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Bitcoin (Bitcoin) Rebound from a certain key level on January 9th, closely mimicking the events of September 2021.

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

$40,700 “Dwarf will be rewarded”

Data from Cointelegraph Markets Pro and Transaction view It shows that BTC/USD reversed around 40,700 USD and then exceeded 42,000 USD.

Although this behavior is not encouraging to some people, it firmly reminds others of Bitcoin’s price behavior at the end of September, when $40,700 was used as a springboard, and finally reached a record high of $69,000 seven weeks later.

“A few months have passed since September. However, from a macro perspective, BTC finds itself in the same situation,” trader and analyst Rekt Capital Comment.

“It is still consolidating within its macro re-accumulation range. In fact, the BTC USD is almost the same as the price point at which BTC bottomed during the September retracement.”

At the same time, the US Federal Reserve’s macro comments on stricter economic policies continue.

As last week, The focus is on whether the crypto market can thrive in an environment without the availability of “loose money”, which has been a characteristic of the economy since March 2020.

Market expert Holger Zschaepitz said: “Crypto diehards are about to discover whether it is really a bubble: the lowest interest rate and trillions of dollars in CenBank funds and government stimulus have helped drive the price of digital assets.” debate In a recent Twitter post.

“Without them, can mkt hold it up? Bitcoin Of course, on the CenBank balance sheet of 40 kW/sq. “

BTC/USD and central bank balance sheet chart.Source: Holger Zschaepitz/Twitter

What’s the difference in a year

A further similarity is that BTC/USD exactly matches the position on the same day on Saturday a year ago. However, one key difference is emotion.

related: Will it be different this time?As the BTC price depicts a “death cross”, Bitcoin’s eyes fell to $35,000

January 8, 2021, Crypto Fear and Greed Index Standing at 93/100, a warning was issued that the local top should come soon, and the market has entered “extreme greed”.

In contrast, this Saturday’s score was only 10/100-one of the lowest readings of the index in the field of “extreme fear”.

Encrypted Fear and Greed Index. Source: Alternative.me

“The BTC bull market is getting more and more fearful. The BTC bear market is getting more and more greedy. It is worth pondering,” Rekt Capital Add to.