Bitcoin price surges to $43,000, but traders warn altcoins will face ‘real pain’
Bitcoin (bitcoin) opened slightly lower on Wall Street on Jan. 11 after the largest cryptocurrency failed to break above resistance above $42,000, but fresh comments from Federal Reserve Chairman Jerome Powell appeared to buoy markets.
Bitcoin is at support
The U.S. is likely to remain in a low interest rate environment for some time, according to Powell, a comment that suggests risk assets like stocks and cryptocurrencies appear to be appreciating.
“Quite simply, Bitcoin is still stuck in a tight range, unable to break the $42,800 level,” Cointelegraph contributor Michaël van de Poppe Summarize Twitter followers.
Trader sentiment remains cautious even as on-chain metrics remain bullish and open interest persists even as the current price rises to $43,100 Sparking hopes of an upside ‘bear squeeze’. “
Commenting on the derivatives order action on Jan. 10, Decentrader co-founder filbfilb said it was too early to reduce caution.
“Big bids on Binance, FTX and Bitfinex and a wicked daily candle. So maybe a little bit of relief, but until things change materially, I’m a bear,” he told his Telegram trading channel subscriptions By.
The real pain for altcoins “has yet to come”
Equally volatile, trader Pentoshi believes that altcoins will move higher before resuming their own downtrend, making it prone to bull traps.
Like filbfilb and others, Pentoshi has been keeping a cool view on Bitcoin, and even took a bearish view extending into 2022 due to the macro climate.
“A lot of these alternatives look like they have a bit of a bounce to suck before a nasty leg drop. A lot of the retested areas have bounced after forming a parabolic rise, but there are big areas below that never build. over-supported,” he said. warn Twitter followers on Tuesday.
“The real pain is yet to come.”
Pentoshi highlighted Solana (Sol), he said he would only be interested in buying at a significantly reduced price between $50 and $80.
At the time of writing, SOL/USD is trading at $140, while the largest altcoin, Ethereum (Ethereum) recovered $3,200 as Bitcoin rallied.