Bitcoin (BTC) swings above $23,000 on Jan. 21 as Asian buyers drive renewed market strength.
Questionable bidding liquidity
According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD bear market reached $22,790 on Bitstamp overnight, the highest since August.
Despite fears of a major correction, Bitcoin continued to surprise as traders paved the way for further gains amid a flurry of new multi-month peaks.
As intraday trader Skew pointed out, sell-side pressure from market makers was absorbed by exchanges, with Asia leading into the weekend.
“Another rally boosted by Asian bids. TWAP buyers absorbing selling pressure from MM. Massive spot bid lifting offers and ask walls pull ahead of another short squeeze.” Skew commented in synthetic charts.
On-chain analytical resource Material Indicators meanwhile with flag Make sure the liquidity has been removed on Binance the day before.This allows Bitcoin’s first run to exceed $22,000
“The volatility continues. Don’t give it all back, secure some profits along the way.” I have written Part of a later update.
“The bigger the pump, the harder it will be for BTC to drop,” says analyst Toni Ghinea. murmuredwhile cryptotony claimed That the whole movement could be nothing more than a “dead cat bounce”.
“Whether this is a wave of dead cat salvation or a bitcoin flip, it’s great to see optimism returning to crypto,” he summarized.
One popular commentator further suggested that traders were manipulative, given why there was a further rally after a week of trading on TradFi ended.
“People who truly want to buy and own cryptocurrencies don’t wait until the end of trading every Friday,” update readadded that these buyers’ “objectives are clear.”
Earlier this week, Material Indicators similarly warned of a “choreographed” bid for BTC.
Major moving averages on the horizon
Therefore, all eyes are on the upcoming weekly close of BTC/USD, which will be the highest since mid-August, if current prices hold.
At the same time, Bitcoin appeared to be about to print a so-called “death cross” on the weekly chart, with the 50 WMA descent above the still rising 200 WMA.
RELATED: Bitcoin Faces $15,000 Crash as US Causes ‘Financial Meltdown’ — Arthur Hayes
The main target is the 200-Week Moving Average (WMA), which is currently at $24,650 and will not be reached for much of 2022.
The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
