Bitcoin (BTC) fell slightly into the Wall Street open on Jan. 11 after the largest cryptocurrency failed to crack resistance above $42,000, but fresh comments from U.S. Federal Reserve chair Jerome Powell appear to be providing a boost to markets.

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

Bitcoin squares off at support

According to Powell, the United States is likely to remain in a low-interest environment for some time, a comment that stocks and risk-on assets like cryptocurrencies seem to appreciate.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to the middle of a narrow range in which it has now spent four days.

“Very simple, Bitcoin is still stuck in a narrow range, in which the $42.8K level couldn’t break,” Cointelegraph contributor Michaël van de Poppe summarized to Twitter followers.

“Overall, we’re facing support right now, which has to hold to avoid any market breakdowns.”

Even with the current push to $43,100, the mood among traders remains cautious even with bullish on-chain indicators persisting and open interest sparking hopes of an upside “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

Commenting on derivatives order book action on Jan.10, Decentrader co-founder, filbfilb, said that it was too early to reduce caution.

“Big bid fills on Binance, FTX and Bitfinex and a wicky daily candle. So maybe some relief for a bit, but I’m a…


Source link

Leave a Reply

Your email address will not be published.

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

Menu