Bitcoin (BTC) returned to $40,000 for the first time in two weeks on February 4 when Wall Street volatility proved to be a boon for BTC bulls.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
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Data from Cointelegraph Markets Pro and TradingView showed that on February 4, just two hours after Wall Street opened, the BTC/USD pair suddenly rose above $40,000, leading to a rapid rally.
At the time of writing, the pair is up $3000 in two hours, an unexpectedly strong performance that of course has the short sellers very upset.
According to network monitoring resource Coinglass, BTC liquidations totaled $50 million in the past four hours, while cryptocurrency liquidations exceeded $100 million.
Bitcoin liquidation table. Source: Coinglass
Analysts who took a closer look at the $39,600 area that should be tested and held were not surprisingly optimistic.
“Well, I think people are starting to freak out,” Cointelegraph contributor Mikael van de Poppe commented.
The Wall Street session started with fresh gains from major manufacturer Amazon, which sent the cryptocurrency higher even though the company’s fundamental data contrasted with the stock.
In the midst of a confusing short-term environment, many have seized the opportunity to replicate price targets on higher time frames.
I doubt there’s $40k of space left for sale. What should have been sold has already been sold off as part of a two-month downtrend that was capped by a total panic,” a popular Light Twitter account continued on the sustainability of the move.
“I also doubt that buyers in the $30,000 range bought to sell here. In many ways, this is similar to the $6,000 level in 2019.”
The BTC/USD pair reached $40,450 on Bitstamp before the consolidation phase started, and the volatility is still very clear.
Ethereum is up nearly 30% from its January lows
Altcoins followed, with Ether (ETH) up more than 10% on the day to reach $3,000.
Related: Bitcoin price jumps after Amazon stock surges 15% as tech returns to US
ETH/USD last traded at its psychologically significant level on January 21 alongside Bitcoin and was close to $2000 just over ten days ago.
1 day light chart of ETH/USD (bit tick). Source: Trading View
Other coins in the top ten by market capitalization were green, with the best-performing Solana (SOL) approaching 13% daily gain.