Bid liquidity causes suspicion
With new multi-month peaks coming in quick succession despite fears of a major correction, Bitcoin continued to surprise as traders cleared the way for more upside.
As noted by intraday trader Skew, Asia was leading the way into the weekend, with sellside pressure from market makers being absorbed on exchanges.
“Another rally driven by asia bid. TWAP buyers absorbing the sell pressure from MMs. Large spot bid lifting offers & ask wall pulled prior to another short squeeze,” Skew commented on a composite chart.
“Volatility continues. Don’t give it all back, be sure to take some profit along the way,” it wrote in part of a subsequent update.
“Regardless if this is dead cat relief wave or a reversal on Bitcoin, it is great to see some optimism back in Crypto,” he summarized.
Considering why further gains were coming after the end of the week’s TradFi trading, one popular commentator additionally suggested that traders were being manipulative.
“No one who genuinely wants to buy and own crypto waits until the Friday close each week to execute,” an update read, adding that those buyers’ “aim is clear.”
Key moving average on the horizon
Attention thus focused on the upcoming weekly close for BTC/USD, which if current prices were to sustain would be its best since mid-August.
At the same time, Bitcoin looked to be about to print a so-called “death cross” on the weekly chart, with the descending 50WMA about to cross over 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.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.