Bitcoin price returns to $ 40,000 – but will shorts take revenge?

Bitcoin (BTC) bounced again to $ 40,000 on Wednesday because the bulls and bears waged a tug-of-warfare for laborious-earned larger positions.

“A lot can happen” from the present BTC price

Data from Cointelegraph Markets Pro and TradingView present that in a single day BTC / USD hit $ 40,200, stamping a uncommon eight consecutive inexperienced day candles.

Investors have been initially skeptical of the power of the preliminary rally that started Monday after hovering above the $ 40,000 mark, adopted by a correction of round 9%.

For Sam Trabucco, a top quality crypto dealer at Alameda Research, such conduct is no surprise given earlier rallies, but it will be intense within the subsequent few days.

“A lot can happen from here – BTC had a stock beta, so it is likely that it will continue to do so, and in the past there has been a ’round number resistance’ that could create it …” he concluded in a collection tweet On Wednesday.

“But $ 40,000 is the native most, so there may be additionally loads of potential for shorts, that are set a lot decrease, to be liquidated if we increase the price a bit of extra. We will see! It will be thrilling within the subsequent few days and I’m positive I’m glad that I’m falling asleep. “

His prediction came when the shorts remained low on the major Bitfinex exchange that day – earlier this month the surge had significantly impacted short-term price pressures.

Check Meanwhile, the purchase and promote ranges on the main alternate, Binance, are rallying to $ 38,500 as Bitcoin’s closest help, with $ 41,000 rising as resistance as effectively.

Fear and greed rise to levels not seen since May

For better or for worse, this week’s price action had a significant impact on market sentiment.

Related: High End GBTC Coincides With Bitcoin Price Crash As Fear Of Unlocking Goes Away

According to the Cryptocurrency Fear & Greed Index, fear has disappeared from the minds of market participants, hitting 50 or “impartial” levels for the last time since the BTC price crashed in May.

The index has doubled in just two days and was only 10/100 last week, which corresponds to the market sentiment of “excessive concern”.

There can’t be room for growth, however – the all-time high in April came with an “excessive greed” rating of 95/100.