Topped or bottomed? Traders at odds over whether Bitcoin will keep rising

Bitcoin trading is anything but simple, as the market has been at odds over whether Bitcoin will keep rising or fall. Investors are left to wonder about what’s next for this volatile and often unpredictable asset.

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The “crypto” is a digital currency that can be used to purchase goods and services. The price of the crypto, or Bitcoin specifically, has been rising over the past few months. Traders at odds over whether it will keep going up or not.

On January 12, despite growing disagreement over whether the price bottom is “in,” Bitcoin (BTC) reached $44,000 once again. 

1-hour candle chart for BTC/USD (Bitstamp). TradeView as a source

Following predictions that $46,000 would soon return, data from Cointelegraph Markets Pro and TradingView showed the $44,000 threshold functioning as local resistance on Thursday.

Following the U.S. inflation figures from the day before, Bitcoin generally increased overnight, although some people advised against being too complacent at this point.

The Twitter account Material Indicators just updated with the statement, “BTC beginning to feel a touch toppy (local), yet requests are spread through some important resistance levels.”

“A few bitcoin bulls may turn up to clear a few levels, but the whole herd will need to show up to clear them all,” 

Material Indicators emphasized order book flux, which on Wednesday had been the subject of a more serious warning about a potential impending collapse, suggesting a favorable time to “de-risk.”

Others, though, thought that a price “squeeze” may eventually be positive and penalize late-arriving short traders.

It looks like the main liquidation wave may be on the upside as perp funding becomes progressively negative as price grinds higher.

— Zhu Su, January 12, 2022 (@zhusu)

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Meanwhile, well-known trader Crypto Ed started to express confidence that substantially lower levels will eventually go.

In a chart snapshot he uploaded, he made the case that if BTC/USD continued to rise throughout the day, the conditions would be favorable for the creation of a higher low as part of a more robust recovery.

Hello everyone! Thank you for allowing me to take a Twitter vacation, but I’m returning to let you know that the #BTC chart is making me more certain that the bottom has really been reached.

I need more proof, but if we do receive that fifth leg today, I’m anticipating it!

on January 13, 2022, Crypto Ed NL (@Crypto Ed NL)

How much time will the alleviation last?

Only a little shift was seen in financing rates across exchanges overnight, with neutral to negative values predominating. 

A repetition of December’s “nuke” is cited by traders as a possible explanation for Bitcoin’s surge to $44,000.

Such conduct contrasts with prior weeks, when a dropping spot price was accompanied by positive financing.

1642070825_671_Topped-or-bottomed-Traders-at-odds-over-whether-Bitcoin-willChart of bitcoin financing rates. Coinglass as a source

As of the time of writing, buyers were stopping each drop as BTC/USD tried to break out of the $44,000 region.

The “fidelity accumulating bitcoin” is a debate that has been going on for quite some time. Some say Bitcoin will keep rising, while others believe it will bottom out.

Related Tags

  • crypto news
  • bitcoin $44k
  • cointelegraph price analysis
  • bitcoin analysis
  • bitcoin options expiry

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