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

Bitcoin (BTC) took a swing to $23,000 on January 21 as buyers in Asia drove new market strength.

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

The liquidity of the bid is questionable

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD warring bear reached $22,790 overnight on Bitstamp – the highest since August.

Despite fears of a major correction with new multi-month highs coming in quick succession, Bitcoin continues to surprise as traders clear the way for further upside.

As noted by Intraday Trader Skew, Asia was leading the way for the weekend, with selling pressure from market makers absorbing into exchanges.

“Another rally driven by the Asia bid. TWAP buyers are absorbing selling pressure from MM. Big spot bid lifting offer and wall pulling ahead of another smaller push,” Skew Comment In a composite chart.

BTC/USD Annotated Chart. Source: Skew/Twitter

Meanwhile on-chain analysis resource material indicators flagged Ask Binance to remove liquidity earlier in the day, allowing Bitcoin’s initial run past the $22,000 mark.

“Instability continues. Don’t give it all back, be sure to take some profits along the way,” it said wrote In the next update part.

BTC/USD order book data (Binance). Source: Material Indicator/Twitter

As always, Bitcoin was far from above doubt at its latest highs, with some familiar faces still urging traders to prepare for the worst.

“The bigger the pump, the harder BTC will be,” analyst Tony Guinea TweetWhen Crypto Tony argued That whole move can be nothing more than “dead cat bounce”.

“Whether it’s against the dead cat relief wave or Bitcoin, it’s great to have some optimism back in crypto,” he summarized.

Considering why more profits are coming in after the end of tradefy trading for the week, one popular commentator has also suggested that traders are manipulating.

“Anyone who doesn’t really want to buy and own crypto doesn’t wait until Friday closes every week,” an update. to readAdds that these buyers “goals are clear.”

Earlier in the week, component indicators similarly warned of “choreographed” bidding in BTC.

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

What is the moving average on the horizon?

Thus attention is focused on the upcoming weekly close for BTC/USD, which should be the best since mid-August if current prices hold.

At the same time, Bitcoin looks set to print a so-called “death cross” on the weekly chart, with the descending 50WMA continuing to cross the still-rising 200 WMA.

BTC/USD 1-Week Candle Chart (Bitstamp) with 50, 200WMA. Source: TradingView

Related: Bitcoin Faces $15K Crash as US ‘Financial Recession’ – Arthur Hayes

A key target was the 200-week moving average (WMA), currently at $24,650 and well out of reach in 2022.

The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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