Home CryptocurrencyAltcoin Does a dead cat bounce? Bitcoin price nears $23,000 at fresh 5-month high

Does a dead cat bounce? Bitcoin price nears $23,000 at fresh 5-month high

by SuperiorInvest

Bitcoin (BTC) rallied to $23,000 on January 21 as Asian buyers fueled fresh market strength.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

The liquidity of the offer raises suspicions

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD struggling bears hit $22,790 overnight on Bitstamp – the highest since August.

With new multi-month highs coming in quick succession despite fears of a major correction, Bitcoin continued to surprise as traders cleared the way for further growth.

As noted by intraday trader Skew, Asia led the way into the weekend, with selling pressure from market makers being absorbed by bourses.

“Another supply-driven rally in Asia. TWAP buyers absorbing selling pressure from MM. Bids to raise large spot bids and wall pulled before the next short squeeze,” Skew he commented on a compound graph.

BTC/USD Commented Charts. Source: Skew/Twitter

Meanwhile, Material Indicators for analysis in the chain marked ask to remove liquidity on Binance a day early, allowing Bitcoin’s initial run past the $22,000 mark.

“Volatility continues. Don’t give it all back, don’t forget to take some profit along the way,” it he wrote in the subsequent update section.

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

As alwaysBitcoin was far from suspicious at its recent highs, with some familiar faces still urging traders to prepare for the worst.

“The bigger the pump, the harder BTC will fall,” analyst Toni Ghinea he tweetedwhile Crypto Tony he argued that the whole movement may be nothing more than a “dead cat’s bounce”.

“Whether it’s a dead cat relief wave or a Bitcoin turnaround, it’s great to see some optimism in crypto,” he concluded.

As for why more profits were coming in after TradFi’s weekly trading ended, one popular commentator additionally suggested that traders are manipulative.

“Nobody who wants to actually buy and own crypto-currencies waits until Friday’s close to execute every week,” the update said readand added that “the objective of these buyers is clear”.

At the beginning of the week, it was also with Material Indicators he warned of “choreographed” bidding on BTC.

BTC/USD 1-Day Candlestick Chart (Bitstamp). Source: TradingView

A key moving average on the horizon

Attention has thus focused on BTC/USD’s upcoming weekly close, which, if current prices hold, would be the best since mid-August.

At the same time, Bitcoin appeared to be about to print a so-called “death cross” on the weekly chart, with the bearish 50WMA about to cross the ever-rising 200WMA.

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

Related: Bitcoin Faces $15,000 Crash As US Triggers ‘Financial Crash’ – Arthur Hayes

The main target was the 200-week moving average (WMA), currently at $24,650 and out of reach for most of 2022.

The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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