Bitcoin (BTC) pulled back a bit at the Wall Street open on January 11 after the largest cryptocurrency failed to break resistance above $42,000, but fresh comments from US Federal Reserve Chairman Jerome Powell seem to provide a boost to the markets.
Bitcoin boxes on support
According to Powell, the US is likely to remain in a low-interest environment for some time, a comment that stocks and risky assets such as cryptocurrencies appear to have risen.
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD returning to the middle of the narrow range it has now been in for four days.
“Very simple, Bitcoin is still stuck in a tight range, where the $42.8K level cannot be broken,” said Michael van de Poppe, a Cointelegraph contributor. Summarization For Twitter followers.
Even with the current rally to $43,100, the mood among traders remains cautious even as bullish on-chain indicators and open interest persist. Raising hopes of a ‘short pressure’ rise. “
The Crypto Fear & Greed Index, rebounding from multi-month lows at just 10/100, remained firmly in “extreme fear” territory after seeing a rally from an overnight price rebound.
Commenting on the derivatives order book procedure on January 10, Decentrader co-founder filbfilb said it was too early to reduce caution.
“Big bids on Binance, FTX, Bitfinex and a malicious daily candle are filling up. So maybe some rest for a while, but I’m holding on until things change materially,” he told subscribers of his trading Telegram channel.
Real pain ‘yet to come’ on altcoins
Equally unstable, fellow trader Bentoshi argued that altcoins were vulnerable to forming a bull trap by rallying before resuming their downtrend.
Related: “The Most Bullish Macro Backdrop in 75 Years” – 5 Things to Watch in Bitcoin This Week
Like filbfilb and others, Pentoshi has maintained a great perspective on Bitcoin and even adopted a bearish view that extends into 2022 thanks to the macro climate.
“A lot of these alternatives seem to have a little bit of bounce to suck people in before their bad leg retracts. Many of the retested areas have already bounced back after equivalent heights were formed but have vast areas underneath where the struts were never built.” warned Twitter followers Tuesday.
“The real pain is yet to come.”
Bentoshi highlighted Solana (SOL), which he said he would only be interested in buying at very low levels of $50 to $80.
SOL/USD is trading at $140 at the time of writing, while the largest altcoin Ethereum (ETH) has reclaimed $3,200 with Bitcoin rallying.