Bitcoin price surges to $43K, but traders warn that ‘real pain’ is due for altcoins

Share This Post

Even with the abrupt surge to $42.3K, traders warn that Bitcoin and altcoins are still in for ‘real pain’ if the current macro perspectives remain the same.

Bitcoin (BTC) fell slightly into the Wall Street open on Jan. 11 after the largest cryptocurrency failed to crack resistance above $42,000, but fresh comments from U.S. Federal Reserve chair Jerome Powell appear to be providing a boost to markets.

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

Bitcoin squares off at support

According to Powell, the U.S. is likely to remain in a low interest environment for some time, a comment which stocks and risk on assets like cryptocurrencies seem to appreciate.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to the middle of a narrow range in which it has now spent four days.

“Very simple, Bitcoin is still stuck in a narrow range, in which the $42.8K level couldn’t break,” Cointelegraph contributor Michaël van de Poppe summarized to Twitter followers.

“Overall, we’re facing support right now, which has to hold to avoid any market breakdowns.”

Even with the current push to $43,100, the mood among traders remains cautious even with bullish on-chain indicators persisting and open interest sparking hopes of an upside “short squeeze.”

The Crypto Fear & Greed Index, fresh from multi-month lows of just 10/100, remained firmly in “extreme fear” territory after seeing a lift from the overnight price rebound.

Crypto Fear & Greed Index. Source: Alternative.me

Commenting on derivatives order book action on Jan.10, Decentrader co-founder, filbfilb, said that it was too early to reduce caution.

“Big bid fills on Binance, FTX and Bitfinex and a wicky daily candle. So maybe some relief for a bit, but I’m a bear until things materially change,” he told subscribers of his Telegram trading channel.

Real pain “yet to come” on altcoins

Equally precarious, fellow trader Pentoshi argued that altcoins were apt to form of bull trap by ticking higher before resuming their own downtrend.

Related: ‘Most bullish macro backdrop in 75 years’ — 5 things to watch in Bitcoin this week

Like filbfilb and others, Pentoshi has maintained a cool perspective on Bitcoin, and has even adopted a bearish view extending through 2022 thanks to the macro climate.

“A lot of these alts look like they have a little bounce incoming to suck people in before a nasty leg down. Many retesting areas they already bounced off after forming parabolic rises but have huge areas below where supports were never built,” he warned Twitter followers Tuesday.

“The real pain is yet to come.”

Pentoshi highlighted Solana (SOL), which he said he would be interested in buying only at vastly reduced levels between $50 and $80.

SOL/USD traded at $140 at the time of writing, while largest altcoin Ethereum (ETH) reclaimed $3,200 as Bitcoin rose.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Massive Ethereum Buying Spree – Taker Buy Volume hits $1.683B In One Hour

Ethereum surged over 10% yesterday, marking an impressive recovery alongside a very bullish day for the entire crypto market This surge has reignited investor optimism, especially as Ethereum

US Regulator Publishes Crypto Guide With Stark FOMO Reminder

The Financial Industry Regulatory Authority (FINRA)’s new crypto guidelines spotlight risks and FOMO-driven decisions, with advice on crypto investing New Crypto Guidelines Highlight Key Challenges

HTX DAO Completes Q3 2024 $HTX Burn Under Liquidity Strategy Transition

PRESS RELEASE On October 15, HTX DAO announced the successful completion of its $HTX token burn for Q3 2024 In the quarter alone, over $2125 million worth of $HTX tokens were burnt This marks a

Dogecoin November Surge: Hashrate Growth Aligns With Rising Search Interest

Dogecoin (DOGE) is once again in the spotlight, drawing attention from crypto enthusiasts and analysts Recent trends suggest growing interest in the popular meme coin, but conflicting indicators

Australia Seeks Public Input on Crypto Tax Reporting

The Australian Treasury has invited public feedback on implementing the Organization for Economic Cooperation and Development (OECD)’s crypto asset reporting model Tackling Crypto-Linked Tax

VanEck maintains $180,000 Bitcoin target as bull market gains steam

VanEck’s latest Bitcoin (BTC) report reaffirmed its cycle price target of $180,000, citing strong bullish indicators that align with the current market rally The asset manager highlighted key