Bitcoin (BTC) spiked into essential liquidity for a third time on Jan. 29 as the weekly and monthly closes. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD briefly hitting $24,498 on Bitstamp overnight. Although short-lived, the move marked the pair’s third attempt to take sell-side liquidity above $23,400 in recent days.
In each instance, bulls appeared to lack momentum to reclaim new support levels. At the time of writing, the status quo remained the same, with Bitcoin trading just below liquidity at $23,250. Previous order book data from Binance uploaded to Twitter by monitoring resource Material Indicators demonstrated the firepower needed to neutralize bears.
As of Jan. 27, resistance was stacked at $23,200, $24,500, and $25,000, with the latter still on traders’ radar as a potential next target.“$25,000 target in sight,” a confident Crypto Tony told Twitter followers in comments on the day. Crypto Tony additionally expected a move higher on altcoins, with the overall crypto market cap set for a retest of resistance above the $1 trillion mark.
“I am still looking for a decent move up over the next few weeks, BUT Be cautious when we begin tapping the $1.2 – $1.33 trillion market cap resistance level. This is a significant level and I expect strong resistance here,” he wrote on Jan. 28. Like others, however, Crypto Tony remained cautious on longer timeframes, keeping the door open for a new macro low to appear on Bitcoin and altcoins at some point in 2023.
Among them is fellow commentator Il Capo of Crypto, who, in an update on the day, avoided technical analysis to state that he remained “short and strong” BTC. “Interesting week ahead current prices, BTC/USD looked set to close the week at its highest levels since mid-August 2022. the ad,” he added.
While BTC/USD attempts to push through liquidity above $23,000, the debate rages as to whether a significant BTC price correction is due. For Garner, who offered a snapshot of several trading signals to Twitter users at the weekend, there is no doubt the picture is firmly green. “They are looking so bullish right now,” he summarized in part of the accompanying commentary.
One metric compares the ratio of BTC to stablecoins across exchanges. This has hit multi-year highs, a screenshot appears to show, beating its peaks from any event since early 2020. “It is rarely ever wrong,” Garner claimed while not providing additional details about its mechanism of action. Traditionally, high stablecoin liquidity hints at bullish continuation, with funds “waiting in the wings” to enter Bitcoin or other crypto assets.
With the ramifications of the FTX meltdown absent from the charts, January gains stood at 39.8% at the time of writing, Bitcoin’s most profitable January since 2013. In addition to the monthly close, the coming week will see new potential macroeconomic triggers from the United States as the Federal Reserve decides on its latest interest rate hike.
Garner presented the ratio of on-chain volume traded in profit, hitting its highest levels in at least three-and-a-half years. “It generates faster trade signals, with a longer track record. It is so bullish right now,” he reiterated.
According to the popular Hash Ribbons metric, the Bitcoin mining sector has recently exited a period of capitulation which ensued as a result of the post-FTX BTC price declines. Hash Ribbons use hash rate to determine periods of miner stress. Such recoveries have historically coincided with BTC price “corrections,” as described by digital asset and global macro investment management firm Wakem Capital Management this week.
This and more will feature in the forthcoming edition of the Cointelegraph Markets newsletter, released Jan. 30. Sign up to receive it free below. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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