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

Bitcoin (BTC) fell barely into the Wall Street open on Jan. 11 after the most important cryptocurrency failed to crack resistance above $42,000, but recent feedback from U.S. Federal Reserve chair Jerome Powell seem to be offering a lift to markets.

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

Bitcoin squares off at help

According to Powell, the United States is possible to stay in a low-interest setting for a while, a remark that shares and risk-on belongings like cryptocurrencies appear to admire.

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD returning to the center of a slim vary wherein it has now spent 4 days.

“Very easy, Bitcoin is nonetheless caught in a slim vary, wherein the $42.8K degree could not break,” Cointelegraph contributor Michaël van de Poppe summarized to Twitter followers.

“Overall, we’re going through help proper now, which has to maintain to keep away from 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, recent from multi-month lows of simply 10/100, remained firmly in “excessive concern” territory after seeing a elevate from the in a single day price rebound.

Crypto Fear & Greed Index. Source: Alternative.me

Commenting on derivatives order e book motion on Jan.10, Decentrader co-founder, filbfilb, mentioned that it was too early to cut back warning.

“Big bid fills on Binance, FTX and Bitfinex and a wicky day by day candle. So possibly some reduction for a bit, but I’m a bear till issues materially change,” he advised subscribers of his Telegram buying and selling channel.

Real ache “but to come” on altcoins

Equally precarious, fellow dealer Pentoshi argued that altcoins had been apt to type of bull lure by ticking larger earlier than resuming their very own downtrend.

Related: ‘Most bullish macro backdrop in 75 years’ — 5 issues 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 via 2022 thanks to the macro local weather.

“A variety of these alts appear like they’ve a bit bounce incoming to suck individuals in earlier than a nasty leg down. Many retesting areas they already bounced off after forming parabolic rises but have big areas beneath the place helps had been by no means constructed,” he warned Twitter followers Tuesday.

“The actual ache is but to come.”

Pentoshi highlighted Solana (SOL), which he mentioned he can be eager about shopping for solely at vastly decreased ranges between $50 and $80.

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

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