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

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
United
States
is
likely
to
remain
in
a
low-interest
environment
for
some
time,
a
comment
that
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

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