bitcoin (BTC) took a turn at $23,000 on Jan. 21 as Asian buyers bolstered the market.
The liquidity of the offers arouses suspicion
With new multi-month highs following in quick succession despite fears of a major correction, Bitcoin continued to surprise as traders paved the way for more upside.
As intraday trader Skew noted, Asia was leading the way at the start of the weekend as selling pressure from market makers was absorbed on exchanges.
“Another rally driven by the Asian bid. TWAP Buyers Absorb MM Selling Pressure. Big Bid Raise Bids and Demand Wall Pulled Before Another Short Pressure,” Skew commented on a composite chart.
Meanwhile, the on-chain analysis resource Material Indicators reported requesting that liquidity be removed on Binance the day before, allowing Bitcoin’s initial run past the $22,000 mark.
“The volatility continues. Don’t give everything back, make sure you make a profit along the way,” he wrote in a later update.
Like alwaysBitcoin was far from above suspicion during its recent highs, with some familiar faces still urging traders to prepare for the worst.
“It doesn’t matter if it’s a dead cat relief wave or a reversal on Bitcoin, it’s great to see some optimism back in Crypto,” he summed up.
Considering why further gains were to come after the week’s TradFi trading ended, one popular commentator also suggested that traders were being manipulative.
“No one who really wants to buy and own crypto waits until Friday close every week to run,” an update readadding that “the objective of these buyers is clear”.
Earlier in the week, Material Indicators also had warned of “choreographed” auctions on BTC.
Key moving average on the horizon
Attention has therefore turned to the upcoming weekly close of BTC/USD which, if current prices were to hold, would be at its best level since mid-August.
At the same time, Bitcoin looked set to print a so-called “death cross” on the weekly chart, with the descending 50WMA poised to cross the still rising 200 WMA.
A major target was the 200-week moving average (WMA), currently at $24,650 and out of reach for much of 2022.
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