Bitcoin is not far from regaining its 200-week moving average, but traders are still highly skeptical of bullish BTC price action.
Bitcoin
BTC
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$23,367
$23,000 on January 21 as Asia adds new strength to the buyer’s market.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Bid liquidity is questionable
Data from Cointelegraph Markets Pro and TradingView show that BTC/USD reached $22,790 on Bitstamp overnight while battling the bear — the most since August.
With new multi-month peaks coming in rapid succession despite fears of a major correction, bitcoin continued to surprise as traders paved the way for further retraction
As noted by intraday trader Skew, Asia led the weekend, with sell-side pressure from market makers on the exchange side.
“Another meeting driven by the Asia bid. TWAP buyers absorbing selling pressure from MM. Large spot bids are raising offers & asking the wall drawn before another small squeeze,” Skew commented on a composite chart.
BTC/USD Annotated Chart. Source: Skew/ Twitter
The chain analysis resource content indicator has been flagged amid the withdrawal of liquidity at Binance a day earlier, pushing bitcoin’s initial run past the $22,000 mark.
“The volatility continues. Don’t give everything away, make sure you take some advantage along the way.’
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BTC/USD Order Book Data (Binance). Source: Content Pointers/ Twitter
As usual, bitcoin was far from in doubt at its latest highs, with some familiar faces still urging traders to prepare for the worst.
Analyst Tony Ghinia tweeted that the bigger the pump, the harder BTC would fall, while Crypto Tony argued that the whole move could be nothing more than a “dead cat bounce”.
“Whether it’s a wave of dead-cat relief or a reversal in bitcoin, it’s great to see some optimism back in crypto,” he summarized.
Considering why the higher gains come after the Tradfy trade at the end of the week, a popular commentator additionally suggested that the traders are being manipulated.
“Those who truly want to buy and own crypto don’t have to wait until closing on Friday every week to execute,” the update said.
Earlier in the week, Material Indicators similarly warned of a “choreographed” bid on BTC.
BTC/USD 1 Day Candlestick Chart (Bitstamp). Source: TradingView
Major moving averages on the horizon
Thus, the focus has shifted to BTC/USD’s upcoming weekly expiry, which will be its best since mid-August if current prices hold.
At the same time, Bitcoin appeared to be printing a so-called “death cross” on the weekly chart, where the descending 50WMA was about to surpass the still rising 200WMA
BTC/USD 1 Week Candle Chart (Bitstamp) 50, with 200WMA | Source: TradingView
Related: Bitcoin faces $15K crash as ‘financial meltdown’ sparks in US — Arthur Hayes
A key target was the 200-week moving average (WMA), which is currently at $24,650 and out of reach for most of 2022.
The views, opinions and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
