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

CoinTelegraph

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

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

Bid liquidity causes suspicion

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

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

How To Get Free Crypto  

As noted by intraday trader Skew, Asia was leading the way into the weekend, with sellside pressure from market makers being absorbed on exchanges.

“Another rally driven by asia bid. TWAP buyers absorbing the sell pressure from MMs. Large spot bid lifting offers & ask wall pulled prior to another short squeeze,” Skew commented on a composite chart.

BTC/USD annotated charts. Source: Skew/ Twitter

On-chain analytics resource Material Indicators meanwhile flagged ask liquidity being removed on Binance the day prior, this allowing Bitcoin’s initial run beyond the $22,000 mark.

“Volatility continues. Don’t give it all back, be sure to take some profit along the way,” it wrote in part of a subsequent update.

Coinbase Banner  

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

As ever, Bitcoin was far from above suspicion at its latest highs, with some familiar faces still urging traders to prepare for the worst.

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

“Regardless if this is dead cat relief wave or a reversal on Bitcoin, it is great to see some optimism back in Crypto,” he summarized.

Considering why further gains were coming after the end of the week’s TradFi trading, one popular commentator additionally suggested that traders were being manipulative.

FreeBitcoin Banner  

“No one who genuinely wants to buy and own crypto waits until the Friday close each week to execute,” an update read, adding that those buyers’ “aim is clear.”

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

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

Key moving average on the horizon

Attention thus focused on the upcoming weekly close for BTC/USD, which if current prices were to sustain would be its best since mid-August.

At the same time, Bitcoin looked to be about to print a so-called “death 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 major target was the 200-week moving average (WMA), currently at $24,650 and out of reach for much of 2022.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Go to Source
Author: William Suberg


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.