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Sunday, March 19, 2023

Dead cat bounce? Bitcoin value nears $23,000 in recent 5-month excessive

Bitcoin (BTC) took a swing at $23,000 into Jan. 21 as Asia patrons drove recent market energy.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bid liquidity causes suspicion

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD battling bears to achieve $22,790 on Bitstamp in a single day — its highest since August.

With new multi-month peaks coming in fast succession regardless of fears of a significant correction, Bitcoin continued to shock as merchants cleared the best way for extra upside.

As famous by intraday dealer Skew, Asia was main the best way into the weekend, with sellside stress from market makers being absorbed on exchanges.

“Another rally driven by asia bid. TWAP buyers absorbing the sell pressure from MMs. Large spot bid lifting offers & ask wall pulled prior to another short squeeze,” Skew commented on a composite chart.

BTC/USD annotated charts. Source: Skew/ Twitter

On-chain analytics useful resource Material Indicators in the meantime flagged ask liquidity being eliminated on Binance the day prior, this permitting Bitcoin’s preliminary run past the $22,000 mark.

“Volatility continues. Don’t give it all back, be sure to take some profit along the way,” it wrote in a part of a subsequent replace.

BTC/USD order e book knowledge (Binance). Source: Material Indicators/ Twitter

As ever, Bitcoin was removed from above suspicion at its newest highs, with some acquainted faces nonetheless urging merchants to arrange for the worst.

“The bigger the pump, the harder BTC will fall down,” analyst Toni Ghinea tweeted, whereas Crypto Tony argued that all the transfer could also be nothing greater than a “dead cat bounce.”

“Regardless if this is dead cat relief wave or a reversal on Bitcoin, it is great to see some optimism back in Crypto,” he summarized.

Considering why additional positive aspects had been coming after the tip of the week’s TradFi buying and selling, one standard commentator moreover recommended that merchants had been being manipulative.

“No one who genuinely wants to buy and own crypto waits until the Friday close each week to execute,” an replace learn, including that these patrons’ “aim is clear.”

Earlier within the week, Material Indicators had likewise warned of “choreographed” bidding on BTC.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Key transferring common on the horizon

Attention thus centered on the upcoming weekly shut for BTC/USD, which if present costs had been to maintain can be its finest since mid-August.

At the identical time, Bitcoin about to print a so-called “death cross” on the weekly chart, with the descending 50WMA about to cross over the still-rising 200 WMA.

BTC/USD 1-week candle chart (Bitstamp) with 50, 200WMA. Source: TradingView

Related: Bitcoin faces $15K crash as US sparks ‘financial meltdown’ — Arthur Hayes

A significant goal was the 200-week transferring common (WMA), at present at $24,650 and out of attain for a lot of 2022.

The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.