Bitcoin (BTC) fell slightly on Wall Street’s January 11 opening after the largest cryptocurrency failed to break resistance above $ 42,000But new comments from Federal Reserve Chairman Jerome Powell seem to be giving markets a boost.
Bitcoin is on the alert with support
According to Powell, The United States is likely to remain in a low interest rate environment for some time, a comment that seems to appreciate stocks and risky assets like cryptocurrencies.
Data from Cointelegraph Markets Pro and TradingView showed the BTC / USD pair is returning to the middle of a narrow range that it has been in for four days.
“Bitcoin is simply still stuck in a narrow range in which the $ 42,800 mark could not be broken”, summarized Cointelegraph contributor MichaÃl van de Poppe, on Twitter followers.
“In general, we are currently facing support that must be sustained in order to avoid market failure.”
Despite the current momentum at USD 43,100, sentiment among traders remains subdued, even if bullish on-chain indicators and open interest continue to raise hopes of a “bearish contraction” in the price.
The Crypto Fear Greed Index, fresh from multi-month lows of just 10/100, held firm in the “extreme fear” area after seeing the price rally spike overnight.
Commenting on the derivatives order book promotions on Jan. 10, Decentrader’s co-founder filbfilb said it was too early to exercise caution.
“It fills a lot on Binance, FTX and Bitfinex and a crazy daily candle. So maybe a little relief for a moment, but I’m a bear until things change materially,” he told his channel’s subscribers.
The real suffering with Altcoins is “still to come”
Equally precariously, trader Pentoshi argued that altcoins tend to create a bullish trap by marking higher before continuing their own downtrend.
Like filbfilb and others, Pentoshi has maintained a cool outlook on Bitcoin and, thanks to the macro weather, has even taken a bearish view that extends into 2022.
“It looks like a lot of these alternatives have a bit of incoming rebound to suck people in in front of some nasty downward wing. Lots of test areas where they already ricocheted off after parabolic climbs formed, but they have huge areas underneath, in never built supports. ” “, warned to his Twitter followers on Tuesday.
“The real pain is yet to come.”
Pentoshi highlighted Solana (SOL) who said it would only be interested in buying it at very low prices between $ 50 and $ 80.
SOL / USD was trading at $ 140 at the time of writing, while the largest altcoin, Ethereum (ETH), bounced back from $ 3,200 levels as Bitcoin rebounded.