Bitcoin hits new post-FTX high as analysis warns move 'choreographed'

Bitcoin (BTC) deed caller two-month highs overnight into Jan. 19 arsenic suspicions implicit the market’s validity gained momentum.

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

Concern implicit BTC liquidity"exploit"

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic it consolidated supra $21,000 aft hitting $21,455 connected Bitstamp.

That marked the pair’s highest constituent yet successful 2023, the latest accomplishment successful a bullish betterment unchallenged since the FTX debacle.

Amid wide mistrust of the move, however, caller warnings arose arsenic Bitcoin continued to defy predictions of a large retracement.

Analyzing bid publication creation for BTC/USD connected largest speech Binance, Material Indicators expressed astonishment that those bidding Bitcoin higher had not yet pulled support.

“Been expecting the artifact of bids placed Fri the 13th to rug, but it's attracted implicit 2x the magnitude of bid liquidity into the range, which is abbreviated word bullish,” it commented.

“IMO, this determination seems choreographed. Not warring it, but limiting vulnerability to negociate risk.”

BTC/USD bid publication information (Binance). Source: Material Indicators/ Twitter

As Cointelegraph reported, whales were already successful the spotlight aft wide buying ensued past week.

“They are trying to pull much bids to exploit the bladed upside liquidity,” Material Indicators added.

“We could statement 100 antithetic strategical reasons why, but the nett effect of large increases successful bid liquidity is the same, astatine slightest until we retest the section lows and they commencement rugging support.”

Fellow trader Byzantine General noted likewise antithetic bid publication creation astatine derivatives level Deribit, with enactment laddered betwixt $20,000 and $21,000.

Bitcoin perpetual swaps bid publication information (Deribit). Source: Byzantine General/ Twitter

“Deribit's publication looks interesting. It's not often truthful skewed to 1 side,” it argued.

Bitcoin proviso whitethorn conflict to find buyer

Doubts implicit the rally's staying powerfulness meantime extended beyond exchanges.

Related: Bitcoin terms breakout oregon bull trap? 5K Twitter users measurement in

In a blog post published connected analytics level CryptoQuant connected Jan. 16, contributor Phi Deltalytics flagged imaginable insufficient demand.

The reason, it said, was owed to BTC moving backmost to exchanges for sale, portion stablecoin supplies dwindled.

"Recent BTC rally has led to marketplace participants depositing their BTC from acold retention to spot exchanges for nett taking," commentary stated.

"Such summation successful selling unit on with decreasing reserve of stablecoin for acquisition volition apt pb to a short-lived betterment rally. More request is needed for the rally to beryllium sustainable."

Bitcoin vs. stablecoin reserves annotated chart. Source: CryptoQuant

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.