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

Bitcoin (BTC) took a swing at $23,000 heading into January 21 as Asian buyers drove fresh market strength.

The liquidity of the offer raises suspicions

Data from Cointelegraph Markets Pro and TradingView show BTC/USD battling bears hit $22,790 on Bitstamp overnight – the highest since August.

With a new multi-month peak coming in quick succession despite fears of a major correction, Bitcoin continues to surprise as traders clear a path higher.

As noted by intraday trader Skew, Asia led into the weekend, with sellside pressure from market makers absorbed in the exchange.

“Another rally driven by Asian bids. TWAP buyers absorb selling pressure from MM. Bids lift big spot bids & ask wall to be pulled before another short squeeze,” Skew comments in a composite chart.

Meanwhile, analytics resources analytics flag Asking liquidity was removed on Binance the previous day, this allowed Bitcoin to open above the $22,000 mark.

“Volatility continues. Don’t give it all back, there’s always a profit down the road,” he said write in the next part of the update.

As always, Bitcoin is far from suspicious of its latest highs, with some familiar faces still urging traders to prepare for the worst.

“The bigger the pump, the harder BTC will fall,” analyst Toni Ghinea tweetedwhile Crypto Tony argue that the whole move might be nothing more than a “dead cat.”

“It doesn’t matter if it’s a wave of relief or a reversal in Bitcoin, it’s good to see some optimism back in Crypto,” he summarized.

Considering why more profits are made after the end of the TradFi trade week, one of the popular commentators also suggested that the traders are manipulative.

“Nobody wants to buy and hold crypto waiting until Friday closes every week to do it,” he updated readadding that the buyers were “clear in their intentions”.

Earlier this week, the Material Indicator also warned of a “choreographed” offering in BTC.

Moving average button on the horizon

Thus, attention is focused on the upcoming weekly close for BTC/USD, which if the current price will remain the best since mid-August.

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

Related: Bitcoin faces $15K crash as US sparks ‘financial collapse’ – Arthur Hayes

The main target is the 200-week moving average (WMA), which is currently at $24,650 and cannot be reached until 2022.

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