Bitcoin price rises to $ 43,000, but traders warn altcoins will be in ‘real pain’

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

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

Bitcoin is on guard with support

According to Powell, The United States is likely to remain in a low-interest environment for some time, a comment that stocks and risky assets like cryptocurrencies seem to appreciate.

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

“Very simply, Bitcoin is still stuck in a tight range, in which the $ 42,800 level could not be broken”, summarized Cointelegraph contributor Michaël van de Poppe to Twitter followers.

“In general, we are facing support at the moment, which must be maintained to avoid market failure.”

Even with the current momentum at $ 43,100, the mood among traders remains cautious, even with the persistence of bullish on-chain indicators and open interest raising hopes of a “bearish contraction” in the future.

The Crypto Fear & Greed Index, fresh from multi-month lows of just 10/100, held firmly in “extreme fear” territory after seeing a surge in price rally overnight.

Crypto Fear & Greed Index. Source: Alternative.me

Commenting on the derivatives order book action on Jan.10, Decentrader co-founder filbfilb said it was too early to reduce caution.

“It fills up a great deal on Binance, FTX and Bitfinex and a wicky daily candle. So maybe a bit of relief for a moment, but I’m a bear until things materially change,” he told subscribers to his channel. Telegram trade.

The real suffering “is yet to come” in altcoins

Equally precarious, trader Pentoshi argued that altcoins were prone to form a bullish trap by marking higher before resuming their own downtrend.

Like filbfilb and others, Pentoshi has kept a cool outlook on Bitcoin and has even taken a bearish view that extends into 2022 thanks to macro weather.

“It looks like a lot of these alternatives have a little incoming bounce to suck people in before a nasty downward wing. Many test areas where they already bounced off after forming parabolic rises, but they have huge areas underneath where supports were never built. “, warned to his Twitter followers on Tuesday.

“The real pain is yet to come.”

Pentoshi singled out Solana (SOL), who said he would be interested in buying it only at very low levels between $ 50 and $ 80.

SOL / USD was trading at $ 140 at the time of writing, while the largest altcoin Ethereum (ETH) rallied to the $ 3,200 level when Bitcoin surged.

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

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