At $40.7K Bitcoin undergoes a traditional bounce returning to its price from January 2021

BTC/USD reversed course at around $40,700 to subsequently pass $42,000, according to data from Cointelegraph Markets Pro and TradingView.

“Months have passed since September. And yet, BTC finds itself in the same situation, macro-wise,” trader and analyst Rekt Capital said. “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 on a more stringent economic policy from the United States Federal Reserve were also maintained. Concerns have been focused on crypto markets’ ability to grow in an environment without “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.”

The Difference A Year Makes –

On January 8, 2021, the BTC/USD pair exactly matched its position from one year ago Saturday, with similarly corresponding similarities. However, sentiment was a major difference.

This Saturday, however, only scored 10/100 on the Index, which is one of the Index’s lowest-ever scores.

Crypto Fear & Greed Index. Source: Alternative.me

The price of Bitcoin has come full circle since January 2021, with the cryptocurrency bouncing back to $40.7K . Despite this bounce-back though, it is unclear whether or not Bitcoin will be able to maintain a stable value going forward as more cryptocurrencies are introduced into the market and continue to take away some of Bitcoin’s share. If you need help in calculating your crypto tax, then Crypto Tax Calculator Australia can help!