Autor Cointelegraph By William Suberg

Bitcoin (BTC) rebounded strongly from $41,000 during Jan. 20 as bears hoping for a step into lower territory stayed disappointed.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewData from Cointelegraph Markets Pro and TradingView showed BTC/USD adding $1,000 after dipping to near the $41,000 mark for the first time since Jan. 11.In what could be a temporary reprieve, Bitcoin nonetheless stayed rangebound, with no noticeable attacks on resistance — behavior all too familiar for spot traders in recent days.”Good bounce from Bitcoin, but I’d be happier if we reclaim $42.4K region,” Cointelegraph contributor Michaël van de Poppe summarized in his latest Twitter update.In a previous post on the day, Van de Poppe highlighted $38,000 as an “ultimate” line in the sand that needs to hold should a fresh breakdown occur.”The ultimate test for Bitcoin is the area between $38-40K. Holding there would confirm buyers stepping in + bullish divergence for a reversal,” he added.Others were confident in the market’s current strength, given a similiar bounce on U.S. stocks prior to the Wall Street open.I don’t trust this #BTC dump We’re still at the golden pocket, got some bull div & SPX just pumped 40 handles off the lowThink we pump from here pic.twitter.com/O81srkoXWR— CRG (@MacroCRG) January 19, 2022Earlier, Cointelegraph reported on forecasts for Bitcoin relative to stock market performance, with well-known analyst Mike McGlone of Bloomberg Intelligence predicting that the broader correlation between crypto and equities would continue through this year.Nonetheless, another topic of interest this week focuses on a divergence in performance between Bitcoin and the Nasdaq, with proponents hoping that BTC would definitively “decouple” from the index’s downward trend.Ethereum follows Bitcoin closer to major supportOn altcoins, only Terra’s LUNA token was able to stand out from sideways action on the day, up 7% and above $80.Related: Here’s why Binance Coin is 33% down from its all-time highEther (ETH), the largest altcoin by market cap, shed 1.2% in the 24 hours to the time of writing, slowly drifting back towards $3,000.ETH/USD 1-hour candle chart (Bitstamp). Source: TradingViewIn his latest YouTube update, Van de Poppe gave a target of $2,800 for a short-term floor on ETH/USD, noting that its relative strength index was apt to provide a “bullish divergence” for price in the coming days.

Bitcoin (BTC) has “at least one more upward impulse to come” before reaching this halving cycle’s all-time high, new research maintains.In a series of tweets about the current state of BTC price action, popular analyst TechDev argued that contrary to many opinions, there is nothing unusual about BTC/USD in 2022.Bitcoin in 2021: Nothing to see hereWith a drawdown of 40% from November’s all-time highs of $69,000 still ongoing, sentiment has likewise taken a hit — “extreme fear” still characterizes both Bitcoin and altcoin markets.For TechDev, known for his optimistic takes on the Bitcoin outlook, there is nonetheless nothing to worry about.Analyzing new wallet addresses relative to price behavior, he showed that last year’s scenario — new address numbers making lower highs while price makes higher highs — is far from unique.”In 4 out of the 6 corrections we saw divergence where price made higher highs and new addresses made lower highs,” comments on two posts read.”…To me, all 6 are running corrections, also supported by declining volume.”That low volume has previously made the headlines as part of concerns that BTC/USD may see unduly significant moves thanks to a lack of liquidity.Overall, however, price behavior relative to Fibonacci levels has stayed well within historical norms, TechDev added, and there is thus no reason to assume that another all-time high will not come before a bearish phase ensues.”Our current correction (since Feb 2021) is taking place between the same two-cycle log fibs as a running correction has always taken place, with locally declining volume and new addresses,” he concluded.Bitcoin new addresses (2 week moving average) vs. BTC/USD chart with Fibonacci levels. Source: TechDev/ TwitterA recovery in waitingAs Cointelegraph reported, interest has broadly fallen away from Bitcoin throughout the past year, specifically when it comes to retail investors.Related: Top or bottom? Traders at odds over whether Bitcoin will keep risingSeasoned traders remain primed, however, with leverage still near all-time highs and institutions tipped to begin reentering the market.In Q4, TechDev meanwhile began highlighting trends in Bitcoin’s relative strength index (RSI) which again showed that a higher all-time high should be due.RSI remains significantly “oversold” for BTC/USD, data from Cointelegraph Markets Pro and TradingView shows, something which in times past has unanimously resulted in a reversal and upside price pressure.BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView

Bitcoin (BTC) hovered near $43,000 on Jan. 17 as “boring” price action combined with signs that the market could be stabilizing.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewLeverage comes off all-time highsData from Cointelegraph Markets Pro and TradingView showed BTC/USD staying firmly within its established trading range between $40,000 and $45,000.With few surprises expected thanks to the Wall Street holiday, traders took the opportunity to call for a level-headed approach on focus on altcoins.Bitcoin is down a few hundred dollars! Quick, someone come up with a narrative for this incredible crash and spread it around the media and twitter!(This is sarcasm, nothing is happening, Bitcoin is sideways and boring)— The Wolf Of All Streets (@scottmelker) January 17, 2022Popular analyst William Clemente meanwhile highlighted Bitcoin bouncing along an ascending trendline this month, this soon to approach a turning point as part of a wedge construction.”Should be an interesting week,” he forecast.Beyond spot price, data showed that market composition still employed near all-time high leverage, this only just beginning to reduce in week two of January.Such leverage prevalence previously sparked concerns that a liquidity cascade could be made all the more real, with a significant move up or down hitting traders.”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: CryptoQuantCardano stands out among altcoinsOn the topic of altcoins, meanwhile, some moves diverged from the flat performance seen more broadly.Related: BTC ‘likely’ to repeat Q4 2020 move — 5 things to watch in Bitcoin this weekThe top 10 cryptocurrencies by market cap were led by Cardano (ADA), which conspicuously bucked the sideways trend to post daily gains of almost 9% at the time of writing. This placed ADA/USD at a three-week high.”Crucially, the market psychology is working on $ADA again,” Cointelegraph contributor Michaël van de Poppe summarized. “Last weeks the sentiment was comparable to a graveyard and expectations were that it would go south. Now, the sentiment is switching and the hype is getting back in.”ADA/USD 1-day candle chart (Coinbase). Source: TradingViewFurther down, Litecoin (LTC) managed 4.5% gains in some brief respite for hodlers.$LTC / $BTCLitecoin’s friend intervened, told him life was worth living and said “think of your family.”Litecoin said “NOT TODAY” and stepped back from the ledge. Another bounce at strong support. A break of the blue resistance should send this flying. Not there yet. 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,” trader, analyst and podcast host Scott Melker added about the LTC/USD pair.