Bitcoin price surges to $43K, but traders warn that ‘real pain’ is due for altcoins
Bitcoin (BTC) fell slightly into the Wall Street open on Jan. 11 after the largest cryptocurrency failed to crack resistance above $42,000, but fresh comments from U.S. Federal Reserve chair Jerome Powell appear to be providing a boost to markets.
According to Powell, the U.S. is likely to remain in a low interest environment for some time, a comment which stocks and risk on assets like cryptocurrencies seem to appreciate.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to the middle of a narrow range in which it has now spent four days.
"Very simple, Bitcoin is still stuck in a narrow range, in which the $42.8K level couldn't break," Cointelegraph contributor Michaël van de Poppe summarized to Twitter followers.
Even with the current push to $43,100, the mood among traders remains cautious even with bullish on-chain indicators persisting and open interest sparking hopes of an upside "short squeeze."
The Crypto Fear & Greed Index, fresh from multi-month lows of just 10/100, remained firmly in "extreme fear" territory after seeing a lift from the overnight price rebound.
Commenting on derivatives order book action on Jan.10, Decentrader co-founder, filbfilb, said that it was too early to reduce caution.
"Big bid fills on Binance, FTX and Bitfinex and a wicky daily candle. So maybe some relief for a bit, but I'm a bear until things materially change," he told subscribers of his Telegram trading channel.
Equally precarious, fellow trader Pentoshi argued that altcoins were apt to form of bull trap by ticking higher before resuming their own downtrend.
Related: ‘Most bullish macro backdrop in 75 years’ — 5 things to watch in Bitcoin this week
Like filbfilb and others, Pentoshi has maintained a cool
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