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Source: Сointеlеgrаph

Bitcoin (BTC) hovered around $23,000 on Jan. 21 as Asian buyers spurred new market strength.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

Liquidity of applications is suspicious

Data from Markets Pro and TradingView showed the bear-fighting BTC/USD rate hit $22,790 overnight on Bitstamp, its highest level since August.

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

As intraday trader Skew pointed out, Asia led the weekend as selling pressure from market makers was absorbed by the exchanges.

“Another rally driven by Asian supply. TWAP buyers absorb pressure from MM. Big spot offers raising the bid and the ask wall extended before the next short squeeze,” Skew commented on the composite chart.

Annotated BTC/USD charts. Source: Skew/Twitter

At the same time, the online analytics resource Material Indicators flagged the removal of liquidity on Binance the day before, allowing Bitcoin’s initial run to top the $22,000 mark.

“Volatility persists. Don’t give it all back, be sure to make a profit along the way,” he wrote in part of a follow-up update.

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

As always, Bitcoin was far from suspect at its recent highs and some familiar faces were still urging traders to brace for the worst.

“The bigger the pump, the harder BTC will fall,” analyst Tony Guinea tweeted, while Crypto Tony argued that the entire move could be nothing more than a “dead cat bounce.”

“Whether it’s a wave of help for a dead cat or a bitcoin reversal, it’s good to see some optimism in crypto,” he concluded.

Given why further gains followed after the end of TradFi’s weekly trading, one popular commentator also suggested that traders were being manipulated.

“No one who really wants to buy and own cryptocurrencies waits for the Friday close every week to execute,” the update says, adding that “the purpose of these buyers is clear.”

Earlier this week, Material Indicators also warned of “staged” BTC trading.

1-day BTC/USD candlestick chart (Bitstamp). Source: Trading View

Key moving average on the horizon

As such, attention has been focused on the upcoming weekly close of BTC/USD, which, if current prices hold, would be the best since mid-August.

At the same time, it looked like Bitcoin was about to print a so-called “death cross” on the weekly chart as the descending 50WMA was about to cross the still rising 200WMA.

Weekly candlestick chart of BTC/USD (Bitstamp) from 50, 200WMA. Source: Trading View

Related: Bitcoin faces $15k crash as US causes ‘financial crisis’ – Arthur Hayes

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

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of .

Source: Сointеlеgrаph

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