Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it consolidated above $21,000 after hitting $21,455 on Bitstamp.
That marks the pair’s highest point so far in 2023, and is the latest achievement in an unchallenged bullish recovery since the FTX debacle.
Amid widespread distrust of the move, fresh warnings emerged as bitcoin continued to defy expectations of a significant rebound.
Analyzing the composition of the order book for BTC/USD on the largest exchange, Binance, Material Indicators expressed surprise that those bidding higher than Bitcoin had not yet pulled support.
He commented, “I expected the mass of bids placed on Friday the 13th to be on the rug, but it attracted more than twice the amount of bid liquidity in the range, which is short-term bullish.”
IMO, the move seems determined. Don’t fight it, but limit exposure to risk management.”
BTC/USD order book data (Binance). Source: Material Indicators / Twitter
As Cointelegraph reported, whales were already in the spotlight after the mass buying that followed last week.
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“They are trying to attract more bids to take advantage of the weak upward liquidity,” Material Indicators added.
“We can discuss 100 different strategic reasons why, but the net effect of large increases in bid liquidity is the same, at least until we retest the local lows and they start to find a strong support.”
Fellow trader Byzantine General noticed a similarly unusual order book formation on derivatives platform Deribit, with support of between $20,000 and $21,000.
Bitcoin perpetual swaps (Deribit) order book data. Source: Byzantine General / Twitter
“Derpit’s book looks interesting. It doesn’t often veer to one side.”
Bitcoin supply may struggle to find a buyer
Meanwhile, doubts about the grouping’s staying power extended far beyond the exchanges.
Related: Bitcoin Price Breakout or Bull Trap? 5K Twitter users think
In a blog post published on analytics platform CryptoQuant on January 16, contributor Phi Deltalytics cited potential insufficient demand.
She said it was because BTC had returned to exchanges for sale, while the supply of stablecoins had dwindled.
“The recent rally in Bitcoin has resulted in market participants depositing their Bitcoins from cold storage to spot exchanges to lock in profits,” the comment states.
“This increase in selling pressure combined with a decrease in stablecoin reserves for buying is likely to trigger a short-term recovery. More demand is needed for the rally to be sustainable.”
