Bitcoin back to $40,000, liquidating over $50 million in shorts in hours

bitcoin ( BTC ) fell back to $40,000 for the first time in two weeks on Feb. 4 as volatility on Wall Street proved a boon for BTC bulls. ...

bitcoin (BTC) fell back to $40,000 for the first time in two weeks on Feb. 4 as volatility on Wall Street proved a boon for BTC bulls.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

BTC Shorts Liquidation Support

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD suddenly surged above $40,000 on February 4, just two hours after Wall Street’s open produced rapid gains.

As of this writing, the pair had risen $3,000 in two hours – a surprisingly strong performance, which understandably caused significant pain for short sellers.

According to According to on-chain monitoring resource Coinglass, BTC liquidations amounted to $50 million in the last four-hour period, with inter-crypto liquidations exceeding $100 million.

BTC liquidation chart. Source: Coinglass

Analysts, closely watching the $39,600 test-and-hold zone, were unsurprisingly similarly bullish.

“Well, I think people are starting to feel FOMO,” commented Cointelegraph contributor MichaĆ«l van de Poppe.

The Wall Street session opened with new gains for the great engine Amazonhelping fuel the crypto rally despite the company’s underlying data contrasting with its stock performance.

In a confusing short-term environment, many took the opportunity to reiterate longer-term price targets.

“Doubt there’s any spot stocks left to sell at $40,000. What was meant to be sold has already been sold during a two-month downtrend, capped by macro panic,” Twitter account popular Light continued as to the sustainability of the moves.

“Also doubt buyers in the $30,000 area have been buying to sell here. Similar in many ways to the $6,000 level in 2019.”

BTC/USD reached $40,450 on Bitstamp before the start of a consolidation phase, with volatility still very much present.

Ethereum adds nearly 30% from January lows

Altcoins followed suit, along with Ether (ETH) up more than 10% on the day to cross the $3,000 mark.

Related: Bitcoin price rebounds after Amazon stock gains 15% in US tech comeback

ETH/USD last traded at its psychologically significant level on January 21, along with Bitcoin, and just over ten days ago it was closer to $2,000.

ETH/USD 1-day candle chart (Bitstamp). Source: Trading View

Others in the top ten cryptocurrencies by market capitalization were green, with the best performing Solana (GROUND) approaching 13% daily gains.