Happy, but not too much? The price of Bitcoin (BTC) is back above $40,000. Can we really hope for what appears to be the beginning of a bullish recovery, or is it too early to judge the sustainability of the current rally?

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The $40,000 Bitcoin: Beware the FOMO and Speculator Bubble

On February 4, 2022, the price of Bitcoin on Bitfinex rose to over $40,900. At the time of this writing, Bitcoin is trading at $40,542 and is currently up a strong double-digit 11.41%.

Today's Green Daily Candlestick is absorbing the massive loss of $40,000 that resulted in the loss of Bitcoin on January 21, 2022, pulling down the price of Bitcoin to below $36,000.

Trader Michaël van de Poppe stressed the existence of a fear of missing out (FOMO) at current levels, indicating that

“People didn’t want to buy it for $33,000, but now they want to buy it for $40,000”

Therefore, the market should remain cautious because FOMOs tend to lead to bubbles caused by short-term speculators mimicking the behavior of other traders or investors, buying assets in large quantities in a relatively short period of time and often in the final stages. Bullish movements.

Bullish Bitcoin: Two Levels and Whale Behavior to Watch

Trader Rekt Capital reports that bitcoin prices are still below the 50-week exponential moving average. That average is currently around $43,300. Bitcoin needs to win it back in order for the bullish recovery to be sustainable.

Bitcoin (BTC) still needs to recover its 50-week exponential moving average for the upside to be sustainable. Published by Rekt Capital – Source: Twitter

Rekt Capital believes bitcoin needs to close above $38,600 this week and then "retest this level as support and possibly revisit" the 50-week average of this exponential level.

Blockware analyst William Clemente goes back to the period when whales increased their holdings of bitcoin. Does February 2022 mark the beginning of another period of increased holdings in 2022?

“Bitcoin whale activity over the past two years.

– March 2020 to March 2021: Increase

– March 2021 – July 2021: Distribution

– July 2021 to September 2021: up

– September 2021 – February 2022: Distribution

– February 2022 – X: Increase in holdings? "

Whale's two years of Bitcoin (BTC) investments. Posted by Will Clemente – Source: Twitter

Were traders and analysts betting on bitcoin eventually falling around $30,000 before the ongoing bull market rally? The only thing that is certain at this point is that the market is currently justifying bitcoin investors' investments when bitcoin briefly drops below $33,000.

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