[ad_1]
Bitcoin (BTC) staged a temporary but promising return to $17,500 overnight on Jan. 11, and newfound strength remained.
Bitcoin Can’t Win Skeptical Traders
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit a new local high of $17,504 on Bitstamp.
Roughly matching the December 16 peak, the pair showed rare upward momentum on the back of record low volatility for the holiday season.
Traders and analysts are now anticipating erratic reactions to upcoming macroeconomic data from the United States. The Consumer Price Index (CPI) release on January 12 is expected to reinforce the narrative of weakening inflation and offer potential opportunities for risk assets.
Nonetheless, many voices cautioned as signs of fundamental price support are still lacking.
Federal Reserve Chairman Jerome Powell’s comments disappointed markets a day earlier, avoiding any reference to future policy or the state of the economy itself.
Popular trader Johnny said “the real breakout or dump will come on Thursday when the CPI data is released.” wrap up on Twitter.
Subsequent posts warned On “tweet bullish as $BTC is under higher timeframe resistance at $17,600,” Johnny previously prompt Followers “Don’t feel the urge to FOMO, especially this week.”
“This week’s CPI could push prices back to last week’s levels,” he argued.
The conservative approach appeared to show signs of widespread indifference among market participants that day, with little faith in Bitcoin’s potential for a sustained rally.
The past few weeks have seen a continuation of macro low predictions by some of the most prominent traders, which have variously focused on $12,000, $10,000, or below.
“Are we heading towards ‘distrust’?” said Philip Swift, co-founder of trading platform Decentrader. queried.
Firmly bearish take stayed Firmly As for Crypto’s Il Capo, he ignored the recent crypto-wide rally, claiming that “there hasn’t been a single bullish confirmation yet.”
“Look. It’s right in front of us. The bearish trend is still there,” he commented alongside the three-day BTC/USD chart.
“Bitcoin and much of the market is testing broken support as resistance. We have seen this many times.”
Altcoin Volume “Very Worrisome”
Equally dubious is the forecast for altcoins, with Ether (ETH) surpassing Bitcoin and the rally beginning.
RELATED: BTC Price Hits 3-Week Highs and US CPI — 5 Things You Need to Know About Bitcoin This Week
ETH/USD is up nearly 17% from its mid-December low of $1,150 on January 10th.
But seeing the trading volume dominance, Maartunn, a contributor to on-chain analytics platform CryptoQuant, feared the worst.
“After 6 years of experience in cryptocurrencies, I have realized something important: healthy and sustainable price volatility starts with the rise of Bitcoin, followed by Ethereum/Altcoins,” he wrote in a blog post. .
“Usually when traders get tired of BTC, they start trading altcoins that are generally on the risk curve.This makes them very fragile and easy to squeeze.”
The accompanying chart shows the altcoin’s trading volume is above 50% of the total, which could act as a wall writing for the bulls.
“Today, the altcoin dominance is over 50% again. Clearly, it doesn’t need to be as heavy as these examples. It can happen,” he added.
The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
[ad_2]
Source link
