Bitcoin (BTC), which fell slightly in the Wall Street open Jan. 11, after the largest cryptocurrency failed at resistance above $42,000, however, new comments by Jerome Powell, the U.S. Federal Reserve chair, appear to be giving markets a boost.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Support for Bitcoin is a win
Powell says that the United States will likely remain in a low interest environment for some time. This is a comment Powell made about stocks and other risk-on assets such as cryptocurrencies.
TradingView and Cointelegraph Markets Pro data showed that BTC/USD returned to the middle of a narrow range, where it had spent four days.
“Very simple, Bitcoin remains stuck in a narrow range in which the $42.8K threshold couldn’t break,” Michael van de Poppe, a Cointelegraph contributor, stated to his Twitter followers.
“Overall we are facing support right now. This must hold to avoid any market collapses.”
Despite the recent push to $43,100 traders remain cautious despite bullish on-chain indicator persisting and open interest sparking hope of an upside “short squeeze”.
After recovering from its multi-month lows at 10/100, the Crypto Fear & Greed Index remained in “extreme fear” territory despite a slight lift from the overnight price rebound.
Crypto Fear & Greed Index. Source: Alternative.me
Filbfilb, Decentrader’s co-founder, commented on the Jan.10 derivatives order book action and said it was too soon to reduce caution.
Big bids fill Binance, FTX, Bitfinex and a wicky day candle. He said that he was able to provide some relief, but that he would continue to be a bear until things change.
Altcoins are causing real pain
Pentoshi, a fellow trader, argued that altcoins could fall precariously by moving higher before returning to their downtrend.
Related: “Most bullish macro background in 75 years” — 5 things you should be watching in Bitcoin this week
Pentoshi, like filbfilb, has kept a cool view on Bitcoin and even took a bearish stance through 2022, thanks to the macroclimate.
“A lot these alts seem to have a little bounce in them to lure people in before they get a bad leg down. He warned his Twitter followers Tuesday that many of the retesting areas have bounced off from parabolic rises, but still have large areas below support areas.
“The real pain lies ahead.”
Pentoshi mentioned Solana (SOL), and he stated that he would only be interested in purchasing it at a very low price between $50-$80.
SOL/USD was trading at $140 at the time this article was written, while the largest altcoin Ethereum, (ETH), reclaimed $3,000. As Bitcoin rose, SOL/USD traded at $140.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView