Bitcoin price drops to $ 40K But will shorts get their revenge?

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Bitcoin (BTC) slipped back to $ 40,000 on Wednesday as bulls and bears battled each other for hard-earned higher ground.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView A lot can happen from current BTC price levels

Data from Cointelegraph Markets Pro and TradingView showed BTC / USD to hit $ 40,200 overnight, sealing eight rare consecutive daily green candles.

Investors were initially skeptical of the strength of the initial recovery, which began on Monday, after surging beyond the $ 40,000 mark followed by a correction of around 9%.

For Sam Trabucco, a qualitative crypto trader at Alameda Research, such behavior came as no surprise, based on previous rallies, but the next few days should be tense.

A lot can happen from here BTC has had an equity beta, so there is potential for it to somehow remain indebted to that, and there has always been resistance to round numbers that Maybe caused him to struggle to stay> $ 40,000, he concluded in a series of tweets on Wednesday.

But $ 40,000 is a local high, so there is also a LOT of potential for shorts set much lower to be liquidated if we come together a little more. We will see! The next few days should be interesting, and I’m really glad I caught up on my sleep.

His predictions came as shorts nonetheless remained low on the big Bitfinex exchange on the eve of this month, sudden increases had noticeably influenced price pressure in the short term.

Examining buy and sell levels on the main Binance exchange, meanwhile, showed growth of $ 38,500 as the closest support level to Bitcoins, with $ 41,000 also in resistance.

BTC / USD (Binance) buy and sell levels as of July 28. Source: TradingViewFear & Greed hit levels not seen since May

For better or worse, this week’s price movement had a huge impact on market sentiment.

Related: GBTC Premium Matches Falling Bitcoin Price Levels As Fear Of Unlocking Fades

According to the Crypto Fear & Greed Index, fear has all but disappeared from the minds of market participants, with its measurement gauge reaching 50, or neutral territory, for the first time since the BTC price crash in May.

The index doubled in just two days and only got 10/100 last week, which matches the feeling of extreme fear in the market.

There may still be room to grow, however. April’s historic highs were accompanied by an extreme greed score of 95/100.

Crypto Fear & Greed Index as of July 28. Source: Alternative.me

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