Bitcoin price is currently hovering around the $40,000 mark after breaking out of the $35k resistance and forming good support at $38,800. The top cryptocurrency hit a monthly high of $40,816 earlier today before retracing under $40K again. The on-chain data suggest traders have turned bullish again as they expect BTC to solidify its position above $40K.

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BTC has recorded eight straight green daily candles and is on its way to the ninth as its price rise above $40,000.

BTC also recorded the largest single-day exchange outflow in one year as nearly 57,000 Bitcoin left crypto exchanges. The large movement of BTC away from exchanges suggest the market sentiments have started to turn bullish again after prolonged two months of bearish sentiments dominating the market.

Another data that points towards the improving confidence of traders is the Bitcoin Fear and Greed Index. The Index was at 10 only last week indicating extreme fear among investors, now the value has turned to 50, which is a massive jump in such a short period.

Bitcoin Shrugs Off Major Bearish Threat

Bitcoin has managed to shrug off several potential bearish threats over the past week as it tries to solidify its position above $40K.  Some of the key news and announcements that could have had a bearish impact on BTC price were, Amazon adding BTC payments turned out to be fake, the recent call by US politicians for strict regulations on the crypto market, Tether’s alleged bank fraud investigation by the US DOJ office.

The top cryptocurrency has also broken out of a 7-month RSI downtrend that led to a trend reversal starting last week. Analysts have been advocating throughout the 2-month bearish phase that BTC has not reached the marker top yet and might see another bullish price rally before the year-end.

About Author

Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.