Is 39,650 USD the bottom? Bulls and Bears Debating Future of BTC Price

Bitcoin (BTC) price briefly rose above $43,100 during the US session but uncertainty remains the dominant sentiment among traders on Jan. 11 and the bulls and bulls. The bears are debating whether the $39,650 level is the bottom.

Data from TradingView shows that Bitcoin price has been trading closely around $42,000 as global financial markets embrace US Federal Reserve Chairman Jerome Powell’s statement on upcoming fiscal policy changes. .

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BTC/USDT 1-day chart. Source: TradingView

Powell indicated that the central bank is ready to “raise interest rates more over time” if inflation continues to linger at high levels, but analysts were quick to note further comments, suggesting that a low interest rate environment may persist for some time.

Here is the ongoing debate on whether the crypto market is positioned to move higher in the coming days.

Bull calls bottom

The crypto market is well known for its volatility and history of plummeting after new ATH levels were established, a trait highlighted by Twitter user ChrisBTCbull.

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Cryptocurrency’s rate of decline from 2021 high. Source: Twitter

The market-wide drop has seen BTC drop almost 40%, while Dogecoin (DOGE) is down 79% from its high, but according to bullish analysts, recent technical developments shows that the market has bottomed.

According to crypto analyst and Twitter user Will Clemente III, Bitcoin is “entering a Buy Zone” as marked on the chart.

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Source: Twitter

Clement says:

This bottoming signal has only flashed five times before in Bitcoin’s history.

Dim Death Cross

Despite the January 11 spike to $43,100, many analysts remain pessimistic about Bitcoin’s short-term outlook and caution that a potential “death cross” on the daily chart was once an indicator. heavily discounted.

As shown below, the 50-day moving average is in close danger of falling below the 200-day moving average, a convergence that in the past has led to a sharp drop in price.

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BTC/USD 1-day chart. Source: Twitter

Bitcoin Archive says:

Bitcoin is approaching the “Death Cross”. The last time this happened in June, the price dropped another 20% in 31 days. That would take us down to $34,000 on Feb. 9 if history repeats itself.

The overall crypto market capitalization stands at $1.998 trillion and Bitcoin dominance is at 40.3%.

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The source: https://nguyendiep.com
Category: news

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