Bitcoin (BTC) hovered close to $43,000 on Jan. 17 as its “boring” worth motion mixed with indicators that the market might be stabilizing.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Leverage comes off all-time highs
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD staying firmly inside its established buying and selling vary between $40,000 and $45,000.
With few surprises anticipated due to the Wall Street vacation, merchants took the chance to name for a level-headed strategy on concentrate on altcoins.
Bitcoin is down a number of hundred {dollars}! Quick, somebody provide you with a story for this unimaginable crash and unfold it across the media and twitter!
(This is sarcasm, nothing is going on, Bitcoin is sideways and boring)
— The Wolf Of All Streets (@scottmelker) January 17, 2022
Popular analyst William Clemente, in the meantime, highlighted Bitcoin bouncing alongside an ascending trendline this month, this quickly to strategy a turning level as a part of a wedge development.
“Should be an interesting week,” he forecast.
Beyond spot worth, information confirmed that market composition nonetheless employed close to all-time excessive leverage, this solely simply starting to scale back in week two of January.
Such leverage prevalence beforehand sparked issues {that a} liquidity cascade might be made all of the extra actual, with a big transfer up or down hitting merchants.
“The highly increased leverage ratio of Bitcoin that since some days remains at an all-time high is showing concerns that a massive volatility increase will follow up,” commentator Vince Prince warned on the day.
“Technically if Bitcoin breaks the $40,000 level this will trigger a big chunk of stop-losses.”
Bitcoin leverage ratio chart. Source: CryptoQuant
Cardano stands out amongst altcoins
On the subject of altcoins, in the meantime, some strikes diverged from the flat efficiency seen extra broadly.
Related: BTC ‘likely’ to repeat This fall 2020 transfer — 5 issues to observe in Bitcoin this week
The high 10 cryptocurrencies by market cap had been led by Cardano (ADA), which conspicuously bucked the sideways pattern to publish each day features of just about 9% on the time of writing. This positioned ADA/USD at a three-week excessive.
“Crucially, the market psychology is working on ADA again,” Cointelegraph contributor Michaël van de Poppe summarized.
“Last weeks the sentiment was comparable to a graveyard and expectations were that it would go south. Now, the sentiment is switching and the hype is getting back in.”
ADA/USD 1-day candle chart (Coinbase). Source: TradingView
Further down, Litecoin (LTC) managed 4.5% features in some transient respite for hodlers.
$LTC / $BTC
Litecoin’s buddy intervened, instructed him life was value residing and mentioned “think of your family.”
Litecoin mentioned “NOT TODAY” and stepped again from the ledge.
Another bounce at sturdy help. A break of the blue resistance ought to ship this flying. Not there but. https://t.co/CvJtodHwNB pic.twitter.com/VOC5psrUhF
— The Wolf Of All Streets (@scottmelker) January 17, 2022
“Another bounce at strong support. A break of the blue resistance should send this flying. Not there yet,” dealer, analyst and podcast host Scott Melker added in regards to the LTC/USD pair.
