bitcoinBTC) price rallied above $ 43,100 in the US trading session, but uncertainty remains the dominant sentiment among traders on Jan.11 and bulls and bears are divided on whether the decline in this week at $ 39,650 was the bottom of BTC.
Data of Markets Cointelegraph Pro Y TradingView shows that the price of Bitcoin has traded closely around the $ 42,000 level as global financial markets digested statements by US Federal Reserve Chairman Jerome Powell about upcoming changes in fiscal policy.
Powell indicated that the central bank is prepared to โraise interest rates further over timeโ if inflation persists at high levels, but analysts were quick to note further comment, suggesting that a low-interest environment could persist for some time .
Traders may have interpreted these comments positively and while Powell's comments cannot be connected to direct price movements, BTC achieved a rapid rise above $ 43,000.
Powell said,
โIt really is time for us to move away from those pandemic emergency settings to a more normal level. It is a long way to normality from where we are โ.
Here's a look at the ongoing debate on whether the crypto market is poised to go higher in the coming days.
The bulls call to the bottom
The crypto market is well known for its volatility and history of large declines after new all-time highs have been set, a characteristic highlighted by pseudonymous Twitter user ChrisBTCbull.
This widespread reduction caused BTC to drop almost 40%, while Dogecoin (DOGE) is down 79% from its highs, but according to bullish analysts, recent technical developments suggest the market has bottomed out.
According to cryptanalyst and Twitter user Will Clemente III, Bitcoin is "entering the buy zone in the idle flow," as highlighted in the following Bitcoin entity-adjusted idle flowchart, which "essentially compares the price with the behavior of spending ".
Clemente said,
"This bottoming signal has only blinked 5 times before in Bitcoin's history."
Related: Bitcoin price rises to $ 43K, but traders warn altcoins will be in 'real pain'
A Death Cross looms
Despite the Jan 11 surge to $ 43,100, many analysts are pessimistic about the short-term outlook for Bitcoin, warning that a possible "death crossover" on the daily chart has historically been a strong bearish indicator.
What displayed then the 50-day moving average is dangerously close to falling below the 200-day moving average, a convergence that, in the past, resulted in sharp price declines.
Bitcoin file said,
"Bitcoin is approaching the 'Cross of Death'. The last time this happened in June, the price fell 20% more in 31 days, which would take us to $ 34,000 by February 9 if this were to repeat" .
As for the altcoin market, the recent price weakness in the USD and BTC pairs was addressed by analyst and pseudonym Twitter user Pentoshi, who posted the following tweet suggesting a more bearish performance in the short term for altcoins.
I'm quite bearish. The hilarious part is the people responding to me with their alt's that are in a downtrend on both the usd / btc pairs. The point of bouncing is to get you chasing your lowest highs.
I still believe that Btc is in a downtrend. because it is. So LH expected
- Pentoshi's DMs ARE SCAMS (@ Pentosh1) January 11, 2022
At the moment, traders appear to be content to play the waiting game to see if the crypto market reverses the course of range stays for the foreseeable future.
The total cryptocurrency market capitalization is now $ 1.998 trillion and Bitcoin's dominance rate is 40.3%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every trade and investment move involves risk, you need to do your own research when making a decision.
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