Bitcoin price surges to $43K, but traders warn that ‘real pain’ is due for altcoins

The “altcoin cryptocurrency” is a digital currency that uses cryptography to control its creation and transfer. Bitcoin has seen an increase in value, but traders warn that the “real pain” is coming for altcoins.

Bitcoin (BTC) dipped marginally into the Wall Street morning on Jan. 11 after failing to break through barrier over $42,000, although recent remarks from US Federal Reserve head Jerome Powell look to be giving markets a lift.

1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.

Bitcoin clashes with support.

Powell predicts that the United States will stay in a low-interest rate environment for some time, a prediction that equities and risky assets like cryptocurrencies appear to embrace.

BTC/USD has returned to the center of a tight range that it has been in for four days, according to data from Cointelegraph Markets Pro and TradingView.

“To put it just, Bitcoin is still locked in a restricted range, which the $42.8K barrier hasn’t been able to breach,” Cointelegraph writer Michal van de Poppe said to Twitter followers.

“Overall, we’re now facing support, which must maintain in order to prevent any market collapses.”

Despite the latest advance above $43,100, traders’ mindset remains cautious, despite the persistence of strong on-chain indicators and open interest fueling anticipation of an upward “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.

Crypto Fear & Greed Index. Source: Alternative.me

Decentrader co-founder filbfilb stated it was too early to abandon caution in response to derivatives order book movement on January 10.

“Binance, FTX, and Bitfinex all had large bid fills, as well as a wicky daily candle. So maybe some respite for a while, but until things substantially shift, I’m a bear “He informed his Telegram trading channel’s users.

On cryptocurrencies, the real agony is yet to come.

Pentoshi, a fellow trader, warned that altcoins were prone to forming a bull trap by ticking upward before beginning their own decline, which was as risky.

5 things to watch in Bitcoin this week: ‘Most optimistic macro backdrop in 75 years’

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.

“Many of these alts seem to have a little bounce to entice folks in before a terrible leg down. Many of the retesting sections have already bounced off after generating parabolic rises, but there are vast expanses below where supports were never installed “He issued a warning to Twitter users on Tuesday.

“The worst is yet to come,” says the narrator.

Pentoshi singled out Solana (SOL), which he stated he’d be interested in purchasing only at a significant discount, between $50 and $80.

Around the time of writing, SOL/USD was trading at $140, while the biggest cryptocurrency, Ethereum (ETH), returned $3,200 as Bitcoin surged.

1 hour candle chart of ETH/USD (Bitstamp). TradingView is the source of this information.

The “altcoin market” is a term used to describe the cryptocurrency market. The price of Bitcoin has surged to $43K, but traders warn that ‘real pain’ is due for altcoins.