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Dead cat jumping? Bitcoin price is approaching a new 5-month high of $23,000

Published on

January 21, 2023
Read Time:2 Minute, 38 Second

Bitcoin (BTC) made a bounce at $23,000 by Jan. 21 as Asian patrons introduced renewed market power.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Supply: TradingView

Provide liquidity raises suspicions

Information from Cointelegraph Markets Professional and trading view confirmed BTC/USD hit $22,790 vs. bears in a single day on Bitstamp – its highest degree since August.

With new multi-month highs showing in fast succession regardless of fears of a significant correction, Bitcoin continued to shock as merchants paved the way in which for extra upside.

As famous by intraday dealer Skew, Asia led into the weekend, with promoting strain from market makers being absorbed by exchanges.

“One other rally pushed by Asia. TWAP patrons take up promoting strain from MMs. Large spot bid lifting gives and ask wall had been drawn earlier than one other brief squeeze,” skew commented on a composite chart.

Annotated BTC/USD charts. Supply: Skew/Twitter

On-chain analytics useful resource Materials Indicators in the meantime marked Ask for liquidity to be eliminated on Binance the day earlier than, permitting for Bitcoin's preliminary run above $22,000.

“The volatility continues. Do not give all the things again, however undoubtedly take a few of it with you," it says wrote A part of a later replace.

BTC/USD order guide knowledge (Binance). Supply: Materials Indicators/ Twitter

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

"The bigger the pump, the harder BTC will fall," says analyst Toni Ghinea tweetedwhereas Crypto Tony argued that your entire motion could also be nothing greater than a lifeless cat bounce.

“Whether or not this can be a lifeless cat reduction wave or a reversal in bitcoin, it is nice to see some optimism in crypto once more,” he summarized.

As well as, contemplating why there have been extra positive aspects after the week's TradFi buying and selling, a well-liked commentator additionally hinted that merchants had been being manipulative.

“Nobody who genuinely desires to purchase and personal crypto waits till the Friday near execute each week,” in response to an replace to readincluding that the "objective of those patrons is obvious".

Earlier within the week, Materials Indicators had additionally warned about “choreographed” bids on BTC.

BTC/USD 1-Day Candlestick Chart (Bitstamp). Supply: TradingView

Key transferring common on the horizon

Consideration due to this fact targeted on the upcoming weekly shut for BTC/USD, which might be its greatest since mid-August if present costs maintain up.

On the identical time, Bitcoin appeared about to print a so-called “dying cross” on the weekly chart, with the descending 50WMA poised to cross the still-rising 200 WMA.

BTC/USD 1 week candlestick chart (Bitstamp) with 50, 200 WMA. Supply: TradingView

Associated: Bitcoin faces $15,000 crash as US triggers 'monetary meltdown' - Arthur Hayes

A key goal was the 200-week transferring common (WMA), which at the moment stands at $24,650 and is out of attain for a lot of 2022.

The views, ideas, and opinions expressed herein are solely these of the authors and don't essentially replicate or characterize the views and opinions of Cointelegraph.



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Azeez Mustafa
Azeez began his FinTech career path in 2008 after growing interest and intrigue about market wizards and how they managed to become victorious on the battlefield of the financial world. After a decade of learning, reading and training the ins and outs of the industry, he’s now a sought after trading professional, technical/currency analyst and funds manager – as well as an author.
Last Updated : January 21, 2023
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