Bitcoin jumps near $41,000 after crypto sentiment indicator hits 6-week low

Bitcoin (BTC) enjoyed a welcome rebound from Wall Street’s opening low on April 13 as US stocks opened in the green.

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

BTC price target remains below $39,000

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair on Bitstamp rose to local highs of $40,965 at the start of trading on Wednesday, its best in over 24 hours.

After a frustrating streak in a range, volatility to the upside was a relief to support levels that previously threatened to collapse.

Bitcoin jumps near $41,000 after crypto sentiment indicator hits 6-week low
Bitcoin jumps near $41,000 after crypto sentiment indicator hits 6-week low

However, traders were not overly bullish as they eyed lower entry levels for a possible long position.

As Cointelegraph reported, popular crypto trader Ed was also risk-on on the day, previously predicting a bounce of relief ahead of a deeper correction below $39,000.

“I’m expecting a move to, say, $41,000 and then I think we’re going to have that extra leg most likely.”he said in a YouTube update posted later.

Ed added that the scenario would be invalidated if the BTC/USD pair managed to sustain above $40,500. At the time of writing, the pair continues to move toward the $41,000 target.

The video was created over 2 hours ago so here I am adding another short term alternative which is just a small detail:

I expect it to move into the red box, but if we go down from here, BTC will form this blue pattern.

Doesn’t change the big picture

The macroeconomic triggers remained unknown, which came in the form of inflation after the US consumer price index (CPI) showed Tuesday at 8.5% for March, the highest level since 1981. In the UK, the CPI accelerated to 7%, a 30-year index high, according to the Office for National Statistics.

Sentiment heading off 6-week lows

Traders appeared primed for a rebound, with the data showing modest sell-offs for both long and short positions over the past 24 hours.

On the other hand, the drop below $40,000 had cost market participants dearly as liquidations of over $500 million took place due to long positions.

Crypto Liquidation Chart. Source: coin jar

At the same time, Sentiment rose as calculated by the Crypto Fear Greed Index after hitting 20/100 or “extreme fear” on Tuesday. The last time sentiment was this low was late February.

Crypto Fear Greed Index (Screenshot). Source: Alternative.me

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