The price of bitcoin ( BTC ) quickly surpassed $43,100 during the U.S. trading session, but uncertainty continues to be the dominant mood among traders on January 11, with bulls and bears divided over whether this week's drop to $39,650 was a bottom for BTC.
Data shows that Bitcoin's price has been oscillating around the $42,000 level as global financial markets digest statements made by US Federal Reserve Chairman Jerome Powell on upcoming fiscal policy changes.
Powell indicated that the central bank is prepared to "raise interest rates more over time" if inflation continues to remain high, but analysts were quick to note further comments suggesting that the low interest rate environment may persist for some time.
It is possible that investors interpreted these comments positively, and while it is not possible to link Powell's comments to immediate price movements, BTC managed to quickly rally above $43,000.
The crypto market is well known for its volatility and history of significant declines after setting new all-time highs, as highlighted by pseudonymous Twitter user ChrisBTCbull.
This overall decline has seen BTC fall by almost 40%, while Dogecoin ( DOGE ) is down 79% from its highs, but according to stubborn analysts, recent technical developments suggest that the market has reached a bottom.
According to crypto analyst and Twitter user Will Clemente III, Bitcoin is "entering the buy zone in a dormant flow," as highlighted in the dormant flow chart below corrected by Bitcoin entities, which "essentially compares price to spending behavior."
