Market Analysis

Was $39,650 the bottom? Bitcoin bulls and bears debate the future of BTC price

BTC bulls seem to believe the bounce off $39,650 marked the bottom, but bears warn that a looming death cross on the daily chart is a sign of further downside.

Bitcoin price made a quick pop above $43,100 in the U.S. trading session but uncertainty is still the dominant sentiment among traders on Jan. 11 and bulls and bears are split on whether this week’s drop to $39,650 was BTC’s bottom. 

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has traded tightly around the $42,000 level as the global financial markets digested U.S. Federal Reserve Chair Jerome Powell’s statements on the upcoming fiscal policy changes.

Was $39,650 the bottom? Bitcoin bulls and bears debate the future of BTC price

BTC/USDT 1-day chart. Source: TradingView

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

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It’s possible that traders may have interpreted these comments positively and while it is not possible to connect Powell’s comments to direct price movements, BTC did manage a quick surge above $43,000.

Powell said, 

For the time being, traders appear content to play the waiting game to see if the crypto market reverses course of stays range-bound for the foreseeable future.

The overall cryptocurrency market cap now stands at $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 investment and trading move involves risk, you should conduct your own research when making a decision.

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