Bitcoin price climbs to $ 43,000, but traders warn the real pain is with altcoins

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Bitcoin (BTC) fell slightly at the Wall Street open on January 11 after the largest cryptocurrency failed to break through resistance above $ 42,000, but new comments from the Chairman of the Reserve Federal government, Jerome Powell, seem to be giving the markets a boost.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewBitcoin attacks support

The United States is expected to stay in a low interest rate environment for some time, according to Powell, with a commentary that stocks and risky assets like cryptocurrencies appear to appreciate.

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

“Very simple, Bitcoin is still stuck in a narrow range, in which the level of $ 42.8,000 could not exceed,” Cointelegraph contributor Michal van de Poppe summed up to Twitter followers.

“All in all, we are currently facing support, which must be maintained to avoid any disruption in the market.”

Even with the current surge to $ 43,100, traders’ mood remains cautious, even with on-chain bullish indicators lingering and open interest sparking hopes of an upward “short squeeze”.

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

Crypto fear and greed index. Source: Alternative.me

Commenting on the action on the derivatives order book on January 10, Decentrader co-founder filbfilb said it was too early to tone down.

“Big bids on Binance, FTX and Bitfinex and a nasty daily candle. So maybe a little bit of relief, but I’m a bear until things change noticeably,” he told followers of its Telegram trading channel.

A real pain “to come” on altcoins

Equally precarious, trader Pentoshi argued that altcoins were likely to form a bull trap by rising before resuming their own downtrend.

Related: Most Bullish Macro Background In 75 Years 5 Things To Watch In Bitcoin This Week

Like filbfilb and others, Pentoshi maintained a cold outlook on Bitcoin, and even took a bearish view extending to 2022 thanks to the macro climate.

“A lot of these alts seem to have a little bounce in to suck people up before a bad leg down. Lots of test areas they’ve bounced off before after forming parabolic climbs, but have huge areas below where supports were never built, ”he warned Twitter followers on Tuesday.

“The real pain is yet to come.”

Pentoshi pointed out to Solana (SOL), who he said he would be interested in buying only at significantly reduced levels between $ 50 and $ 80.

SOL / USD was trading at $ 140 at the time of writing, while the larger Ethereum (ETH) altcoin recovered $ 3,200 as Bitcoin rose.

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

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