Bitcoin rallies to near $41,000 after crypto sentiment gauge hits 6-week low

Bitcoin (BTC) experienced a welcome downside at Wall Street’s opening on April 13 as US stocks opened in the green.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

The price target below $39,000 BTC remains

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD surged to local highs of $40,965 on Bitstamp when trading began on April 13, its best in over 24 hours.

After a frustrating range-bound period, volatility to the upside has been a relief to support levels that previously threatened to collapse.

However, traders were not overly bullish as they eyed lower entry levels for a potential long position.

As Cointelegraph reported, popular trader Crypto Ed was also risk-averse on the day, previously forecasting a bounce of relief ahead of a deeper correction below $39,000.

“I’m looking for a move, say, toward $41,000, and then I think we’re most likely going to get that extra leg down,” he said in a YouTube update released later.

Ed added that the scenario would be invalidated if BTC/USD manages to sustain above $40,500. At the time of writing, the pair is still moving towards the $41,000 target.

Macro triggers remained familiar, this came in the form of inflation after the US consumer price index (CPI) was released on April 12 at 8.5% for March, the highest reading since 1981. In the UK, the CPI rose to 7% , a 30-year index high, according to figures from the Office for National Statistics.

Sentiment heading off 6-week lows

Traders appeared primed for the rally, with the data showing modest position liquidations for both longs and shorts over the past 24 hours.

Related: BTC Stock Correlation “Not What We Want” – 5 Things to Know About Bitcoin This Week

In contrast, the drop below $40,000 had cost market participants dearly as liquidations topped $500 million, fueled by longs.

Crypto Liquidation Chart. Source: coin jar

At the same time, sentiment rose as calculated by the Crypto Fear & Greed Index, which hit 20/100 or “extreme fear” on April 12th. Such a low sentiment reading was last recorded at the end of February.

Crypto Fear & Greed Index (Screenshot). Source:

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