Sunday, February 25, 2024

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


Bitcoin (BTC) took a swing at $23,000 into Jan. 21 as Asia patrons drove contemporary market energy.

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

Bid liquidity causes suspicion

Knowledge from Cointelegraph Markets Pro and TradingView confirmed BTC/USD battling bears to succeed in $22,790 on Bitstamp in a single day — its highest since August.

With new multi-month peaks coming in fast succession regardless of fears of a serious correction, Bitcoin continued to shock as merchants cleared the best way for extra upside.

As famous by intraday dealer Skew, Asia was main the best way into the weekend, with sellside stress from market makers being absorbed on exchanges.

“One other rally pushed by asia bid. TWAP patrons absorbing the promote stress from MMs. Massive spot bid lifting gives & ask wall pulled prior to a different brief squeeze,” Skew commented on a composite chart.

BTC/USD annotated charts. Supply: Skew/ Twitter

On-chain analytics useful resource Materials Indicators in the meantime flagged ask liquidity being eliminated on Binance the day prior, this permitting Bitcoin’s preliminary run past the $22,000 mark.

“Volatility continues. Do not give all of it again, you should definitely take some revenue alongside the best way,” it wrote in a part of a subsequent replace.

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

As ever, Bitcoin was removed from above suspicion at its newest highs, with some acquainted faces nonetheless urging merchants to organize for the worst.

“The larger the pump, the tougher BTC will fall down,” analyst Toni Ghinea tweeted, whereas Crypto Tony argued that the complete transfer could also be nothing greater than a “lifeless cat bounce.”

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“Regardless if that is lifeless cat reduction wave or a reversal on Bitcoin, it’s nice to see some optimism again in Crypto,” he summarized.

Contemplating why additional beneficial properties have been coming after the tip of the week’s TradFi buying and selling, one fashionable commentator moreover steered that merchants have been being manipulative.

“Nobody who genuinely desires to purchase and personal crypto waits till the Friday shut every week to execute,” an replace read, including that these patrons’ “purpose is obvious.”

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

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

Key transferring common on the horizon

Consideration thus targeted on the upcoming weekly shut for BTC/USD, which if present costs have been to maintain can be its greatest since mid-August.

On the similar time, Bitcoin seemed to be about to print a so-called “dying 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. Supply: TradingView

Associated: Bitcoin faces $15K crash as US sparks ‘financial meltdown’ — Arthur Hayes

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

The views, ideas and opinions expressed listed here are the authors’ alone and don’t essentially mirror or signify the views and opinions of Cointelegraph.