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

Bitcoin (BTC) dipped 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: TradingView

Bitcoin clashes over support

According to Powell, the United States will likely remain in a low interest rate environment for some time, a comment that stocks and risk in assets like cryptocurrencies seem to enjoy.

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

“Very simple, Bitcoin is still stuck in a narrow range, in which the level of $ 42.8K could not exceed,” said Michaël van de Poppe, contributor to Cointelegraph. abstract 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 lingering bullish indicators and open interest. raise hopes of a “little pressure” upwards.

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 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: “The Most Bullish Macro Backdrop in 75 Years” – 5 Things To Watch Out For 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 the racks were never built, ”he said. warned Twitter followers 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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