Bitcoin (BTC<\/a>) 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\u00a0BTC’s\u00a0bottom.\u00a0<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> shows that the price of Bitcoin\u00a0has 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.<\/p>\n Powell\u00a0indicated<\/a> that the central bank is prepared to \u201craise interest rates more over time\u201d 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. <\/p>\n 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.<\/p>\n Powell said,\u00a0<\/p>\n \u201cIt is really time for us to move away from those emergency pandemic settings to a more normal level. It\u2019s a long road to normal from where we are.\u201d<\/p><\/blockquote>\n Here\u2019s a look at the ongoing debate on whether the crypto market is positioned to head higher in the coming days. <\/p>\n The crypto market is well known for its volatility and history of extensive drawdowns after new all-time highs have been established, a characteristic highlighted<\/a> by\u00a0pseudonymous Twitter user ChrisBTCbull.<\/p>\n This across-the-board drawdown saw BTC fall by nearly 40%, while Dogecoin (DOGE<\/a>) is down 79% from its highs, but according to bullish analysts, recent technical developments suggest that the market has reached a bottom. <\/p>\n According to crypto analyst and Twitter user Will Clemente III, Bitcoin is \u201centering the Buy Zone on Dormancy Flow\u201d as highlighted on the following Bitcoin entity adjusted dormancy flow chart, which \u201cessentially compares price to spending behavior.\u201d <\/p>\n Clemente said, <\/p>\n \u201cThis bottoming signal has only flashed 5 times before in Bitcoin’s history.\u201d<\/p><\/blockquote>\n Related: <\/em><\/strong>Bitcoin price surges to $43K, but traders warn that \u2018real pain\u2019 is due for altcoins<\/em><\/strong><\/a><\/p>\n Despite Jan. 11’s spike to $43,100, many analysts are pessimistic about Bitcoin’s short-term prospects and caution that a potential \u201cdeath cross\u201d on the daily chart has historically been a strong bearish indicator. <\/p>\n As shown<\/a> below, the 50-day moving average is perilously close to falling below the 200-day moving average, a convergence that, in the past, resulted in sharp price declines.<\/p>\n Bitcoin Archive said, <\/p>\n \u201cBitcoin is approaching the “Death Cross.\u201d The last time this happened in June the price dropped 20% more over 31 days. That would take us down to $34K by the 9th of Feb if this repeated.\u201d<\/p><\/blockquote>\n As for the altcoin market, the recent price weakness in the USD and BTC pairs was addressed by analyst and pseudonymous Twitter user Pentoshi, who posted the following tweet suggesting a more bearish performance in the near term for alts. <\/p>\n Im pretty bearish alts. The hilarious part is the people replying to me with their alts which are in downtrends on both usd\/btc pairs. The point of the bounces is to get you to chase into your lower highs<\/p>\n I still believe Btc is in a downtrend. Bc it is. Which is why LH expected<\/p>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/f1e57d29-1116-4d56-8676-b437b0bf7a85.png\")
Bulls call the bottom<\/h2>\n
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A Death Cross looms<\/h2>\n
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