Bitcoin hits new post-FTX high as analysis warns of ‘choreographed’ movement.
Concern over Bitcoin liquidity ‘exploitation’
Data from TradingView followed BTC/USD consolidating above $21,000 after hitting $21,455 on Bitstamp. This marked the pair’s highest point ever in 2023, the latest success in an unbeatable bullish recovery since the FTX debacle.
However, amid the widespread distrust of the move, new warnings have surfaced as Bitcoin continues to challenge predictions of a massive pullback. Analyzing the order book composition for BTC/USD on the largest exchange Binance, Material Indicators expressed surprise that those who bid Bitcoin higher have not yet pulled support.
Material Indicators commented, ‘I expected Friday the 13th’s bid block to return to the carpet, but it has drawn more than 2x the bid liquidity into the range, which is a short-term bullish move’. He then added:
“IMO, this move looks like it was choreographed. Limit exposure to manage risk, not fight it.”
Whales were on the agenda after bulk purchases
cryptocoin.com As we mentioned, whales came to the fore after the bulk purchases last week. “They are trying to attract more bids to take advantage of the weak upside liquidity,” said Material Indicators. He then added:
“We could argue for 100 different strategic reasons why, but the net effect of large increases in bid liquidity is the same, at least until we retest local lows and they start to consolidate support.”
Other trader Byzantine General similarly noted the unusual order book composition on derivatives platform Deribit with support between $20,000 and $21,000. General, the ‘Deribit’ book looks interesting. It’s usually not that crooked to one side.’ he argued.
Bitcoin supply may struggle to find buyers
Meanwhile, doubts about the rally’s staying power have gone beyond the stock markets. In a blog post published Jan. 16 on analytics platform CryptoQuant, contributor Phi Deltalytics pointed to potential insufficient demand.
This was because BTC was returning to exchanges for sale and the stablecoin supply was dwindling. “The recent BTC rally has led market participants to invest their BTC in spot exchanges to profit from cold storage,” he said in the comment. The following statement was then made:
“Such increase in selling pressure and dwindling stablecoin reserve for purchase will likely lead to a short-lived recovery rally. More demand is needed for the rally to be sustainable.”
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