Bitcoin rebounded nearly $ 1,000 in minutes on Jan. 12 as more encouraging signs surfaced from the exchanges.
BTC / USD 4-Hour Candlestick Chart | Source: TradingView
Data from TradingView shows that BTC hit $ 43,810 on Wednesday, its highest level since Jan 6.
Traders say the pair continues to make volatile moves and is increasingly moving up rather than down.
They argue that this could come in the form of a “short squeeze” against shorter comes and that the peak on day 4 seems to support this theory.
Funding rates on derivative platforms have remained neutral or negative during periods of volatility, which further suggests that the market is too biased towards new losses.
Bitcoin Funding Rate Chart | Source: Coinglass
Prominent trader and analyst Scott Melker, known as the “wolf of the streets”, has reiterated his spot price targets for the BTC divestment. He told Twitter followers that retracing the highs above $ 50,000 would then form a pivot to entry into the market.
https://twitter.com/scottmelker/status/1481231424892121096?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener“My long leverage target is $ 39,800.
– CZK 42K
45,500 won
– 46,660
I’ll get off 75% by then, let the rest wait to see if we can hit $ 52,000, and then re-evaluate.
Aim for my spot purchases … “
Meanwhile at Video On YouTube, Michaël van de Poppe on Tuesday marked $ 43,000 as a potential stepping stone to a ride to $ 46,000 with no resistance in between.
Meanwhile, US consumer price index (CPI) data, released at 8:30 p.m. Synthetic Team time tonight, could give an extra boost in the event that inflation unexpectedly falls.
Bitcoin investors make their decisions as a single daily outflow from major exchanges near 30,000 BTC.
Data from on-chain analysis company CryptoQuant shows that 29,371 BTC left the exchange’s order book on January 11th – the largest since September 10th.
Outflows hit 4-month highs, suggesting a return of near-term optimism on Tuesday as BTC rebounds and holds levels above $ 42,000.
The pair then hit a local high of $ 43,150 before consolidating. Another abrupt change, as many predicted, could cause it to crash and bring the price down to $ 30,000.
While such an outcome is still the subject of debate, buyers seem comfortable getting into the $ 40,000 plus market.
Even the rally that set the race to all-time highs in late September didn’t attract as many buyers as it did on Tuesday.
Bitcoin Net Cash Flow Chart over Exchange | Source: CryptoQuant
“Low volume. That means the market can fluctuate a lot. Since BTC has been on a big downward move and people are buying like it’s the end of the world, I would say the next move is bullish,” commented Blockstream CEO Samson Mow.
CryptoQuant tracks a total of 21 exchanges to create order book data. Last week’s data focused on what one analyst called a “crazy” bias imbalance between supply and demand, suggesting that bears are finally losing interest in selling.
Cash buyers used to be the main group not interested in BTC at current prices.
Miners have topped up their reserves faster and faster this year, and long-term owners are determined not to sell.
Citing an upward trend in the buy / sell ratios of Bitcoin buyers, CryptoQuant IT staff member CryptoQuant revealed that a similar situation is playing out in the derivatives markets.
This indicator relates to the ratio of buying and selling volumes by buyers on derivative platforms. A reading below 1 implies bearish sentiment and while it is for the moment the trend is bullish.
“If we go above 1, we are bullish again and have the chance to reverse the price trend. Personally, I am preparing for the last Bull Run, which will come sooner or later ”, IT Tech summarized in one of the“ Quicktake ”posts from CryptoQuant on Wednesday.
Buy / sell ratio of Taker Bitcoin vs. price BTC / USD | Source: CryptoQuant
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