Bitcoin (BTC) hovered near $43,000 on Jan. 17 as its “boring” price action combined with signs that the market could be stabilizing.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Leverage comes off all-time highs
Data 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, 2022
Popular 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: CryptoQuant
Cardano stands out among altcoins
On 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 week
The top 10 cryptocurrencies by market cap were led by Cardano…
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