Dead cat bounce? Bitcoin price nears $23,000 in fresh 5-month high

1 year ago

Bitcoin (BTC) took a plaything astatine $23,000 into Jan. 21 arsenic Asia buyers drove caller marketplace strength.

Bid liquidity causes suspicion

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD battling bears to scope $22,790 connected Bitstamp overnight — its highest since August.

With caller multi-month peaks coming successful speedy succession contempt fears of a large correction, Bitcoin continued to astonishment arsenic traders cleared the mode for much upside.

As noted by intraday trader Skew, Asia was starring the mode into the weekend, with sellside unit from marketplace makers being absorbed connected exchanges.

“Another rally driven by asia bid. TWAP buyers absorbing the merchantability unit from MMs. Large spot bid lifting offers & inquire partition pulled anterior to different abbreviated squeeze,” Skew commented connected a composite chart.

On-chain analytics assets Material Indicators meantime flagged inquire liquidity being removed connected Binance the time prior, this allowing Bitcoin’s archetypal tally beyond the $22,000 mark.

“Volatility continues. Don't springiness it each back, beryllium definite to instrumentality immoderate nett on the way,” it wrote successful portion of a consequent update.

As ever, Bitcoin was acold from supra suspicion astatine its latest highs, with immoderate acquainted faces inactive urging traders to hole for the worst.

“The bigger the pump, the harder BTC volition autumn down,” expert Toni Ghinea tweeted, portion Crypto Tony argued that the full determination whitethorn beryllium thing much than a “dead feline bounce.”

“Regardless if this is dormant feline alleviation question oregon a reversal connected Bitcoin, it is large to spot immoderate optimism backmost successful Crypto,” helium summarized.

Considering wherefore further gains were coming aft the extremity of the week’s TradFi trading, 1 fashionable commentator additionally suggested that traders were being manipulative.

“No 1 who genuinely wants to bargain and ain crypto waits until the Friday adjacent each week to execute,” an update read, adding that those buyers’ “aim is clear.”

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

Key moving mean connected the horizon

Attention frankincense focused connected the upcoming play adjacent for BTC/USD, which if existent prices were to prolong would beryllium its champion since mid-August.

At the aforesaid time, Bitcoin looked to beryllium astir to people a alleged “death cross” connected the play chart, with the descending 50WMA astir to transverse implicit the still-rising 200 WMA.

A large people was the 200-week moving mean (WMA), presently astatine $24,650 and retired of scope for overmuch of 2022.

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

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