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

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

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

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 serious correction, Bitcoin continued to shock as merchants cleared the way in which for extra upside.

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

“Another rally pushed by asia bid. TWAP patrons absorbing the promote stress from MMs. Large spot bid lifting gives & ask wall pulled prior to a different brief 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 all of it again, you’ll want to take some revenue alongside the way in which,” it wrote in a part of a subsequent replace.

BTC/USD order e-book information (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 organize for the worst.

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

“Regardless if that is lifeless cat aid wave or a reversal on Bitcoin, it’s nice to see some optimism again in Crypto,” he summarized.

Considering why additional beneficial properties have been coming after the top of the week’s TradFi buying and selling, one fashionable commentator moreover steered that merchants have been being manipulative.

“No one who genuinely desires to purchase and personal crypto waits till the Friday shut every week to execute,” an replace read, including that these patrons’ “goal is evident.”

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

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

Key shifting common on the horizon

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

At the identical time, Bitcoin seemed to be about to print a so-called “loss of life 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 shifting 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 mirror or characterize the views and opinions of Cointelegraph.