Was $ 39,650 the lower limit? Bitcoin bulls and bears debate the future of the price of the star cryptocurrency

Bitcoin price rose quickly above $ 43,100 on the U.S. trading day, but uncertainty remains the prevailing sentiment among traders on Jan. 11, as bulls and bears are now divided on whether the drop will hit the $ 39,650 mark this week Has bottomed out for BTC.

Data from Cointelegraph Markets Pro and TradingView show that the price of Bitcoin (BTC) traded very close to the $ 42,000 level as global financial markets digest statements made by Federal Reserve Chairman Jerome Powell about the upcoming fiscal changes.

1-day chart of the BTC / USDT pair. Source: TradingView

Powell indicated that the central bank would be ready to “keep rates hike over time” if inflation stays high, but analysts were quick to point to other comments suggesting that the low interest rate environment may continue for some time could.

Was $ 39,650 the lower limit?  Bitcoin bulls and bears debate the future of the price of the star cryptocurrency
Was $ 39,650 the lower limit? Bitcoin bulls and bears debate the future of the price of the star cryptocurrency

Traders may have interpreted these comments positively, and while Powell’s comments cannot be linked to direct price movements, BTC quickly surged to over $ 43,000.

Powell said:

“It is really time we moved away from these emergency pandemic scenarios and moved to a more normal level. It’s a long way to normal from where we are. “

Here’s a look at the current debate over whether the cryptocurrency market is poised to go higher in the next few days.

The cops say the ground is already marked

The cryptocurrency market is known for its volatility and history of large declines after hitting new all-time highs, a trait presented by the pseudonymous Twitter user “ChrisBTCbull”.

Percentage of decline in major cryptocurrencies from 2021 highs. Source: Twitter

This widespread decline caused BTC to drop nearly 40% while Dogecoin (DOGE) fell 79% from its highs, but according to bullish analysts, recent technical advances suggest the market has already bottomed.

According to analyst and Twitter user Will Clemente III, Bitcoin “enters the buy zone while idling,” as highlighted in the following graph of the idle adjusted by the Bitcoin unit, which “essentially compares price to spending behavior”.

Adjusted idle of Bitcoin unit. Source: Twitter

Clemens said:

“This ground signal has only appeared 5 times in the history of Bitcoin.”

A “death cross” appears

Despite today’s rally to $ 43,100, many analysts are pessimistic about the near-term outlook for Bitcoin, warning that a potential “death crossover” on the daily chart has historically been a strong bearish indicator.

How do I know shows then the 50-day moving average is dangerously close to falling below the 200-day moving average, a convergence that has historically led to sharp falls.

1-day chart of the BTC / USD pair. Source: Twitter

Bitcoin Archives said:

“Bitcoin is approaching a ‘death crossover’. The last time this happened in June, the price fell another 20% in 31 days. That would bring us to $ 34,000 on February 9 if this were repeated.” .

As for the altcoin market, the recent weakness of the USD and BTC pairs was addressed by analyst and pseudonymous Twitter user “Pentoshi”, who posted the following tweet suggesting a short-term bearish move in so-called alternative currencies.

For now, traders seem content to play the waiting game to see if the cryptocurrency market will reverse course or stay in a range in the near future.

The total market capitalization of the cryptocurrency is currently $ 1.998 trillion and the dominance index of Bitcoin is 40.3%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every movement of investment and trade carries a risk, you must conduct your own investigation when making a decision.

Similar Posts