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On Thursday, Bitcoin and altcoins are awash in green as a wave of hope washes away the recent crypto bloodbath.
On May 20, Bitcoin (BTC) reached $42,000, when altcoins entered the biggest cryptocurrency in its record-breaking comeback.
BTC price hits February highs
Data from TradingView shows BTC/USD spiking to previous all-time highs from February on Thursday.
Volatility was back at the time of publication, when bulls attempted to overcome what was once formidable opposition.
As previously noted, the last 24 hours have been a challenge like no other for Bitcoin, with selling pressure driving it to $30,000, only to evaporate and make a rush to $40,000 — all within five hours.
On Thursday, higher volumes persisted, with fleeting surges indicating big buy-ins ahead of a concerted drive higher.
In comparison to the local lows, BTC/USD added an unprecedented 40% in less than 24 hours.
“The most spectacular rallies happen when emotions within the market at their most extreme,” popular Twitter trader Rekt Capital said as part of multiple posts as the market rose.
Rekt Capital noted that the Crypto Fear & Greed Index, a key indicator of sentiment, was practically repeating behavior from March 2020 when cryptocurrencies broadly crashed.
As such, others were beginning to reveal long positions on the day in a further signal of the belief that the worst of the dip was over.
#BTC is currently inside the $38000-$44000 range
Two things to watch out for in the short-term:
• Can ~$38000 hold as support during a retest attempt?
— Rekt Capital (@rektcapital) May 20, 2021
ADA leads major altcoin rally
The latter was flying high once again thanks to Twitter activity from Tesla and SpaceX CEO Elon Musk, who on Thursday hinted at a plan to drive DOGE/USD to $1.
How much is that Doge in the window? pic.twitter.com/bxTkWOr50V
— Elon Musk (@elonmusk) May 20, 2021
The top ten cryptocurrencies by market capitalisation saw regular gains of 40% or more as Bitcoin led broken tokens back to where they had been just days before.
At the time of publication, Ether (ETH) was up 40% after momentarily falling below $2,000.