Bounce dead cat? Bitcoin price is approaching $23,000 at a new 5-month high

Bitcoin (BTC) soared from $23,000 on Jan. 21 as buyers in Asia brought new market strength.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: TradingView

Bid liquidity causes suspicion

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

With new multi-month highs coming in quick succession despite fears of a major correction, Bitcoin continued to surprise as traders paved the way for more upside.

As noted by intraday trader Skew, Asia led the way over the weekend, absorbing pressure from market makers on the exchanges.

“Another rally driven by a bid from Asia. TWAP buyers absorb selling pressure from MMs. Big Places Clearing Bids & Demand Wall Pulled Ahead of Another Short Squeeze, “Skew noticed on a composite map.

BTC/USD annotated charts. Source: Skew/Twitter

On-chain analytics source Material indicators meanwhile marked ask if liquidity is removed on Binance the day before, pushing Bitcoin’s first run above $22,000.

“Volatility continues. Don’t give it all back, make sure you take some profit along the way, ‘it wrote as part of a future update.

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

As always, Bitcoin was far from above suspicion on 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 argued that the whole movement may be nothing more than a dead cat bounce.

“Whether this is a deadly wave of relief or a Bitcoin reversal, it is great to see some optimism reflected in Crypto,” he summarized.

In addition, given why further gains came after the end of the week’s TradFi trading, a popular commentator suggested that traders were being manipulative.

“No one who really wants to buy and own crypto is waiting until Friday’s close each week to execute,” an update readadding that the purpose of those buyers is clear.

Earlier this week, Material Indicators had similarly warned of “choreographed” bidding on BTC.

BTC/USD 1 day candlestick chart (Bitstamp). Source: TradingView

Main moving average on the horizon

So attention was focused on the upcoming weekly close for BTC/USD, which, if current prices continue, would be the best since mid-August.

At the same time, Bitcoin appeared to be about to print a so-called “death cross” on its weekly chart, with the falling 50 WMA about to cross the still-rising 200 WMA.

BTC/USD 1 week candlestick chart (Bitstamp) with 50, 200WMA. Source: TradingView

Related: Bitcoin Faces a $15,000 Crash as the US Causes ‘Financial Collapse’ – Arthur Hayes

A key target has been the 200-week moving average (WMA), currently at $24,650 and out of range for much of 2022.

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