Bitcoin stays in tight range as analyst eyes potential ‘interesting week’ in BTC

Bitcoin (BTC), hovered around $43,000 on January 17. This was due to “boring” price actions and signs that the market could stabilize.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

All-time highs in leverage

Cointelegraph Markets Pro data and TradingView data showed that BTC/USD remained within its established trading range of $40,000 to $45,000

With little to no surprises due to Wall Street holiday traders used the opportunity to call on traders to focus on altcoins with a measured approach.

Bitcoin has fallen a few hundred dollars Quick! Someone has to come up with a story for this amazing crash, and it should be shared on social media and Twitter. This is sarcasm. Nothing is happening. Bitcoin is boring and sideways.
— January 17, 2022, The Wolf Of All Streets (@scottmelker).

William Clemente, a popular analyst, highlighted Bitcoin’s bouncing along an ascending trendsline this month. This is expected to soon reach a turning point in a wedge construction.

He predicted that it would be an “interesting week”.

Data showed that the market composition was still at an all-time high level of leverage. This is only beginning to decrease in week 2.

This high level of leverage has raised concerns about a liquidity cascade, which could lead to traders being affected by a large move up or down.

“The Bitcoin’s high leverage ratio, which has remained at an all-time high for some days, is raising concerns that there will be a major volatility rise,” Vince Prince, a commentator on the day, said.

Technically, if Bitcoin breaks $40,000 this will trigger a large chunk of stop-losses.

Bitcoin leverage ratio chart. Source: CryptoQuant

Cardano is a standout among altcoins

Altcoins are a topic that has seen some divergence from the more general flat performance.

Related: BTC is ‘likely to’ repeat Q4 2020 move — 5 Things to Watch in Bitcoin This Week

Cardano (ADA) was the leader of the top 10 cryptocurrencies in market cap. It posted daily gains of nearly 9% at the time this article was written. This pushed ADA/USD to a three week high.

Michael van de Poppe, a Cointelegraph contributor, summarized: “Crucially the market psychology works on $ADA again.”

“Last week, the sentiment was like a graveyard. Expectations were that it would turn south. The sentiment is shifting now and the hype is coming back in.

ADA/USD 1-day candle chart (Coinbase). Source: TradingView

Further down, Litecoin LTC (LTC) saw 4.5% gains during a brief respite from hodlers.

$LTC / $0.BTC Litecoin’s friend intervened and told him that life is worth living. He also said, “Think of your family.” Litecoin responded “NOT TODAY” to the friend and took a step back from the edge. Another bounce at strong resistance. This should fly if there is a break in the blue resistance. It is not yet.
— January 17, 2022, The Wolf Of All Streets (@scottmelker).

“Another bounce at high support. This should fly if there is a break of the blue resistance. Scott Melker, trader and analyst, added that the LTC/USD pair is not yet complete.