Bitcoin (BTC) returned to $40,000 for the first time in two weeks on February 4th, as Wall Street turbulence aided BTC bulls.
1-hour candle chart of BTC/USD (Bitstamp).

Liquidations mount for BTC shorts

Bitcoin, Data from Cointelegraph Markets Pro and TradingView showed BTC/USD unexpectedly breaking beyond $40,000 on Feb. 4, just two hours after Wall Street opened.
At the time of writing, the pair had gained $3,000 in two hours – an unusually strong performance that caused tremendous agony for short-sellers.
According to Coinglass, an on-chain monitoring site, BTC liquidations were $50 million over the most recent four-hour period, with cross-crypto liquidations exceeding $100 million.

BTC liquidations graph.

Analysts, who were keeping a close eye on the $39,600 area to be tested and held, were also upbeat.

“Well, I think people are starting to sense FOMO,” Cointelegraph contributor Michael van de Poppe said.

Even though the company’s fundamental facts contradicted its share performance, the Wall Street session began with new gains for large mover Amazon, which helped to drive the crypto rise.

Amid a perplexing short-term situation, several took the opportunity to restate longer-term price expectations.

“I doubt there’s any spot inventory remaining to sell at $40,000. What was going to be sold has already been sold in a two-month downturn punctuated by a macro panic “Light’s prominent Twitter account continued to discuss the long-term viability of the moves.

“Also, I doubt people in the $30K range bought to sell here. In many ways, it is similar to the $6K level in 2019.”
BTC/USD reached $40,450 on Bitstamp before entering a consolidation phase, with volatility remaining high.

Ethereum has gained roughly 30% since its January lows.
Altcoins followed suit, with Ether (ETH) rising more than 10% on the day to cross the $3,000 milestone.

ETH/USD last traded at its critical psychological level on January 21, along with Bitcoin, and was closer to $2,000 just over 10 days ago.

1-day candlestick chart of ETH/USD (Bitstamp).

Others in the top ten cryptocurrencies by market capitalization were up, with best performer Solana (SOL) approaching 13% daily gains.

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Last Updated on June 20, 2022 by Alex Burma