Bitcoin (BTC) was hovering around $43,000 on January 17, when “boring” price action combined with signs that the market could stabilize.

Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Usage comes from record levels
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD remains within the specified trading range between $40,000 and $45,000.

With many surprises expected due to the Wall Street holiday, traders took the opportunity to call for a fair approach to focus on cryptocurrencies.

Meanwhile, famous analyst William Clemente explained that Bitcoin is bouncing off an upward trend line this month and is soon approaching a turning point as part of a wedge formation.

“It should be a fun week,” he predicted.

In addition to the spot rate, the data showed that the market structure is still close to the highest leverage ever and only started declining in the second week of January.

This spread of leverage has fueled earlier fears that the liquidity chain could become more realistic, as large moves up or down affect traders.

Commentator Vince Prince warned on the same day that “the sharp rise in the bitcoin lending rate, which has been at an all-time high for several days, shows fears of a significant increase in volatility.”

“Technically speaking, if Bitcoin breaks through the $40,000 level, it will trigger most of the stops.”

Bitcoin leverage chart. Source: CryptoQuant
Cardano stands out among the altcoins
Meanwhile, when it comes to alternative digital currencies, some of the features differ from the usual indicators.

Related: BTC ‘likely’ to repeat the movement in Q4 2020 – 5 things to see in Bitcoin this week

Cardano (ADA) topped the top 10 cryptocurrencies by market capitalization, which has surprisingly faced a sideways trend with daily gains of nearly 9% at the time of writing. This put the ADA/USD at a three-week high.

“It is imperative that market psychology work with ADA again,” summarized Michael van de Poppe, a Cointelegraph contributor.

“Last week it was like a cemetery and it was expected to go south. Now the weather is changing and the noise is back.”

ADA/USD 1-day chart (Coinbase). Source: Trading View
Moreover, Litecoin (LTC) managed to gain 4.5%, which was a short respite for scammers.

“Another recovery of strong support. A breakdown of blue resistance should send this plane off. Not yet,” added trader, analyst and podcast host Scott Melker about the LTC/USD pair.

Source: CoinTelegraph

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