Bitcoin makes a classic jump at the $ 40,700 level when the price of BTC closes the loop in January 2021

Bitcoin (BTC) bounced off an important level for some on January 9, closely mimicking the events of September 2021.

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

“Short strategists will be smashed to $ 40,700”

Data from Cointelegraph Markets Pro and TradingView showed that the reverse rate of the BTC / USD pair hovered around $ 40,700 before exceeding $ 42,000.

The behavior, while uninspiring to some, strongly reminded others of Bitcoin’s price action in late September. when the $ 40,700 level acted as a stepping stone that eventually produced all-time highs of $ 69,000 seven weeks later.

Bitcoin makes a classic jump at the $ 40,700 level when the price of BTC closes the loop in January 2021
Bitcoin makes a classic jump at the $ 40,700 level when the price of BTC closes the loop in January 2021

“It has been months since September. And yet BTC is in the same situation at the macro level.” commented the trader and analyst Rekt Capital.

“It is still consolidating within its macro accumulation area. In fact, $ BTC is almost at the same price point where BTC bottomed in the September retracement.”

Meanwhile, the US Federal Reserve’s macro commentary continued to tighten economic policy.

Like last week, concerns centered on the ability of cryptocurrency markets to thrive in an atmosphere of the lack of the “easy money” availability that has been shaping the economy since March 2020.

“Crypto fans are about to find out if this really was a bubble: rising interest rates and trillions of dollars in CenBank money and government incentives have helped drive up the prices of digital assets.” argued Market expert Holger Zschaepitz in a recent Twitter post.

“Can mkt go without her? Bitcoin on course $ 40kw / flat CenBank balance sheets. “

BTC / USD pair vs. central bank balance. Source: Holger Zschaepitz / Twitter

What a difference a year makes

Other similarities came in the form of the BTC / USD pair, which on Saturday corresponded exactly to its position from the same day a year ago. One major difference, however, was the mood.

On January 8, 2021, the Crypto Fear Greed Index stood at 93/100 and warns that a local top is coming soon and the market has entered “extreme greed”.

Vice versa, this Saturday it only hit 10/100, one of the lowest scores on the index, deep in the “extreme fear” range.

Crypto Fear and Greed Index. Source: Alternative.me

“BTC bulls get fearful. BTC bears get greedy. Food for thought”, added Rect capital.

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