The dead cat bounces? Bitcoin price nears $23,000 in new 5-month high

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Bitcoin (BTC) took a turn at $23,000 on January 21 as Asian buyers strengthened the market.

BTC/USD 1 hour candle chart (Bitstamp). Source: TradingViewBid Liquidity Raises Suspicion

Data from Cointelegraph Markets Pro and TradingView showed bear-battling BTC/USD hit $22,790 on Bitstamp overnight, its highest level since August.

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. Significant bid raises and demand wall pulled before another short squeeze, Skew commented on a composite chart.

BTC/USD annotated charts. Source: Skew/Twitter

On-chain analytics resource Material Indicators meanwhile reported the removal of liquidity on Binance the previous day, which helped Bitcoin break through the $22,000 mark.

The volatility continues. Don’t give it all back, make sure you make a profit along the way, he wrote in part of a later update.

BTC/USD order book data (Binance). Source: Materials Indicators/Twitter

As always, Bitcoin was far from above suspicion during its recent 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 tweeted, while Crypto Tony argued that the whole move could be nothing more than a dead cat bounce.

Whether it’s a dead cat relief wave or a reversal on Bitcoin, it’s good to see some optimism back in Crypto, he summed up.

Considering why further gains were to come after the TradFi trading weeks ended, one popular commentator also suggested that traders were being manipulative.

No one who really wants to buy and own crypto waits for the Friday close every week to execute, an update reads, adding that the goal of these buyers is clear.

Earlier in the week, Material Indicators also warned of choreographed bidding on BTC.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingViewKey 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.

BTC/USD 1 week candle chart (Bitstamp) with 50, 200WMA. Source: Trading View

Related:Bitcoin faces $15,000 crash as US triggers financial meltdown Arthur Hayes

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

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

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