Bulls and Bears Debate Is $ 39,650 Bitcoin’s Low?

The bulls appear to have confidence in Bitcoin’s $ 39,650 rally, marking a low, but the death cross appears on the daily chart before a bearish sign.

Bitcoin price briefly surged above $ 43,100, but uncertainty still dominates trader sentiment on Jan. 11, and bulls and bears are debating whether or not $ 39,650 is Bitcoin’s bottom this week.

Data from TradingView shows that Bitcoin was trading at around $ 42,000 as global financial markets heeded Fed chairman Jerome Powell’s statements about upcoming fiscal policy changes.

BTC / USDT daily frame price chart | Source: TradingView

Powell indicated that the central bank was ready to “keep rate hikes over time” if inflation remained high, but analysts were quick to note additional comments suggesting the low interest rate environment may continue for a while.

Traders could have interpreted these remarks positively, and while Powell’s statements couldn’t be directly linked to price action, Bitcoin quickly surged above $ 43,000.

“It really is time we got rid of the Covid-19 pandemic emergency and moved to more normal levels. It’s been a long way, “said Powell.

Here is the ongoing debate about whether the crypto market is capable of soaring higher in the days to come.

Cows call the ground

The crypto market is notorious for its volatility and persistent price drops after every new ATH set in its history, as pointed out by user ChrisBTCbull.

Percentage of ATH crashes of cryptocurrencies in 2021 | The source: Twitter

Specifically, Bitcoin is down nearly 40% versus ATH while Dogecoin (DOGE) is down 79%, but according to analysts, recent tech developments suggest the market has bottomed out.

Analyst “Will Clemente III” says Bitcoin is “entering a dormant buy zone” as highlighted in the adjusted table for inactive traffic, essentially when compared to spending behavior prices.

“This ground signal has flashed only five times before in the history of Bitcoin,” said Clemente.

Bitcoin traffic inactive | Source: Twitter

A potential death cross

Despite rising to $ 43,100 on Jan. 11, many analysts remain pessimistic about Bitcoin’s near-term outlook, warning that a potential “death cross” on the daily chart was once an indicator.

As shown below, the 50-day moving average is at risk of falling below the 200-day MA, and in the past it has often resulted in sharp falls.

BTC / USDT daily frame chart | Source: Twitter

“Bitcoin is about to form a ‘death cross’. The last time this happened in June the price fell 20% in 31 days. If history repeats itself, the price will drop to $ 34,000 on February 9th, Bitcoin Archive said.

At the moment, traders seem to be waiting to see if the crypto market will reverse its trend in the near future.

The total capitalization of the crypto market is currently $ 2.008 billion and the dominance of Bitcoin is 40.2%.

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