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.
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.
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.
“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
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.
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Author: William Suberg