Bitcoin (BTC) returned to $40,000 on Wednesday as bulls and bears waged a tug-of-state of war for hard-won higher ground.

BTC/USD 1-60 minutes candle chart (Bitstamp). Source: TradingView

"A lot tin can happen" from electric current BTC price levels

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $twoscore,200 overnight, sealing a rare eight direct green daily candles in a row.

Investors had been initially skeptical of the strength of the initial rally, which began Monday, afterward a snap surge past the $40,000 mark followed by a roughly 9% correction.

For Sam Trabucco, a qualitative crypto trader at Alameda Research, such beliefs was of piffling surprise, based on previous rallies, but the side by side few days should exist tense.

"A lot tin happen from here — BTC has had a stock beta, so there'southward potential for it to remain sorta beholden to that, and there has historically been 'round number resistance' maybe causing it to struggle staying >$40k," he ended in a series of tweets on Wednesday.

"But $40k is a local max, so at that place'south also LOTS of potential for shorts put on much lower to get liquidated if nosotros rally even a little more than. Nosotros'll see! It should be an interesting next few days, and I'm sure glad I caught up on sleep."

His predictions came as shorts nonetheless remained depression on major exchange Bitfinex on the solar day — earlier this month, sudden increases had noticeably influenced short-term cost pressure.

Examining buy and sell levels on major exchange Binance, meanwhile, showed $38,500 growing as Bitcoin's nearest support level, with $41,000 as well hardening as resistance.

BTC/USD purchase and sell levels (Binance) every bit of July 28. Source: TradingView

Fear & Greed rises to levels not seen since May

For better or worse, this week'due south toll action has had a sizeable touch on on marketplace sentiment.

Related: GBTC premium matches Bitcoin cost crash levels as unlocking fearfulness fades

According to the Crypto Fear & Greed Alphabetize, fear has all only drained from the mindset of market participants, with its measure out approximate reaching fifty, or "neutral" territory, for the beginning time since the May BTC price crash.

The Index has doubled in just 2 days, and last week scored just 10/100, corresponding to marketplace sentiment of "extreme fear."

There could nonetheless exist room to abound — Apr'south all-fourth dimension highs were accompanied past an "extreme greed" score of 95/100.

Crypto Fear & Greed Index as of July 28. Source: Alternative.me