bitcoin (BTC) spent another day tackling $25,000 on February 20 as analysts continued to warn of market manipulation.
Bitcoin powered by "Notorious BID"
Data of Cointelegraph Pro Markets and TradingView It showed that BTC/USD made up for losses around the weekly close to approach the $25,000 mark again as of this writing.
However, the bulls were unable to spark a resistance-support reversal, and whale activity in exchanges he kept suspicions high.
In its latest update, monitoring of resource materials indicators revealed that high volume traders were artificially โcuttingโ resistance overhead, making BTC/USD more likely to rally.
Co-founder Keith Alan referenced a wall of bid liquidity that drives the spot price up, something he called "notorious bid"
โMultiple $25k rejections correlate perfectly to BTC macro TA which is a valid reason to TP at these levels but Notorious BID is still trying to push the price up,โ read one tweet.
"Based on history and the potential to overcome illiquidity to the upside, I'm still busting longs."
material indicators aggregate that โFrom a TA perspective, this should be a local top, but Notorious BID is still running the binance order book.โ
โThey are distributing BTC ask for liquidity outside of the $25k โ $25.5k range in the active trading zone, so resistance is narrowing,โ part of the comments further read.
One potential plan among these traders could be to spark a big price rally, causing retail investors to pile up or go long, and then get caught up when the whales deliver BTC to the market at higher levels.
China Could Boost โLiquidity Junkieโ Crypto
Meanwhile, with US markets closed for the holidays, one analyst focused on the long-term implications of China's moves.
Related: A 'snap back' to $20K? 5 things to know about Bitcoin this week
In addition to potentially allowing With Hong Kong retail investors accessing previously banned cryptocurrencies, the Chinese central bank injected a record $92 billion of liquidity into the economy on February 17.
โWhile most analysts are focused on how the Fed tightening will change the price of risk assets this cycle, they are not considering the scale of the easing in the east,โ argued the popular Twitter account Tedtalksmacro in a post. thread.
He explained that unlike the US, where the Fed is withdrawing liquidity through quantitative tightening (QT), China is doing the opposite. In 2020, under the Fed's COVID-19 quantitative easing (QE), risk assets, including cryptocurrencies, experienced an eighteen-month bull run.
โCrypto is not tied to any particular economy or entity, rather it is a liquidity junkie โ it yearns for the risk-hungry investor to get cash and bet on the horse faster. That will be exactly what will happen this year in China,โ the thread continued.
Like Cointelegraph reportedUS liquidity is already a major talking point when it comes to crypto asset performance, with Arthur Hayes, former CEO of derivatives giant BitMEX, predicting that the decline will continue into the second half of 2023.
โOf course, not all the cash injected by the PBoC will end up in risky assets. But I bet a decent part will! Nonetheless, Tedtalksmacro concluded.
โJust like we saw in the West in 2020, more central bank liquidity = prices for risky assets (like BTC) go up.โ
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Post navigation
