The Bitcoin price surged above the $42,500 resistance level and hit $44,000 before correcting lower. At press time BTC Price is consolidating gains above $43,750. Similarly, most major altcoins extended gains and tested resistance.
Despite the sudden rise above $43K, traders warn that Bitcoin and altcoins are still in for “Real Pain” if macro perspectives stay unchanged.
Bitcoin (BTC) dipped marginally into the Wall Street morning on Jan. 11 after failing to break through a barrier over $42k, but recent comments from US Federal Reserve head Jerome Powell look to be giving markets a lift.
What’s Ahead For Bitcoin Price ?
Powell predicts that the US will continue in a low-interest environment for some time, a prediction that equities and risky assets like cryptocurrencies appear to embrace.
BTC/USD has returned to the middle of a narrow range it has been in for four days. As per popular analyst Michal van de Poppe, Bitcoin is still locked in a restricted range, which the $42.8K barrier hasn’t been able to breach.
Despite the current advance to $43k, traders’ mindset remains cautious, despite the persistence of strong on-chain indicators and open interest fueling anticipation of an upward “short squeeze.”
After enjoying a bounce from the overnight price rebound, the Crypto Dread & Greed Index, which had fallen to a multi-month downtrend of just 10/100, stood firm in “severe fear” territory.
Decentrader co-founder filbfilb stated it was too early to abandon caution in response to derivatives order book action on January 10.
“Binance, FTX, and Bitfinex all had large bid fills, as well as a wicky daily candle. So maybe some relief for a while, but until things substantially shift, I’m a bear “He informed his Telegram trading channel’s users.
The Real Agony is yet to come For Altcoins
Pentoshi, a well-known crypto strategist, warned that altcoins were prone to forming a bull trap by ticking upward before beginning their own decline, which was risky.
Pentoshi, like filbfilb and others, has kept a low profile on Bitcoin, even adopting a pessimistic outlook that extends through 2022 due to the macro environment.