Bitcoin (BTC) surged nearly $1,000 in minutes on Jan 12, with encouraging signs emerging from exchanges.
The pair should continue volatile moves, traders say, with more and more favoring an upward momentum rather than a renewed decline.
That would likely come in the form of a “short squeeze” against the laggards, they argued, and Wednesday’s surge appeared to support the theory.
Funding rates on derivatives platforms remained neutral or negative during volatility, further suggesting that the market was betting too much on further losses.
Reacting, popular trader and analyst Scott Melker, known as the “Wolf Of All Streets,” reiterated his spot price targets to get rid of BTC. A rally from higher levels beyond $50,000 would form a pivot for a market entry, he told Twitter followers.
Targets for my $39,800 long leverage.
– 42 thousand✅
– 45.5 thousand
– 46.6 thousand
I’ll be 75% out by then, I’ll leave the rest to see if we can hit $52,000 and then reassess.
Goals for my cash purchases:
— The Wolf Of All Streets (@scottmelker) January 12, 2022
However, in your YouTube update On Tuesday (11), Cointelegraph contributor Michaël van de Poppe flagged $43,000 as a potential springboard for a trip to $46,000 thanks to a lack of resistance in the middle.
“I still have buy orders at $38,000; they won’t be hit, but I’m buying a lot here,” he said.
Meanwhile, Wednesday’s upcoming US consumer price index (CPI) data, forecast at 8:30 am ET, could provide fresh fuel for the fire, should inflation fall outside expectations.
Ether among top altcoins flying high
In the wake of Tuesday, altcoins capitalized on Bitcoin’s newfound strength.
The top 10 cryptocurrencies by market cap added more than 4% on the day, led by Polkadot (DOT), Terra (LUNA) and Ether (ETH).
The latter is up over 5% at the time of writing, firmly moving away from the $3,000 support.
Previously, warnings came for altcoins in general, with tokens yet to experience “real pain” during the current dip.
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