Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is crossing the $19,000 mark as US stocks start trading.
The pair quickly squeezed out sell-side liquidity overnight, gapping higher into what the on-chain analytical material indices forecast could be a retest of the $20,000 mark.
“Looks like BTC is poised to retest resistance on the 2017 Top,” she wrote in part of a Twitter discussion on Jan. 12, the day before.
“Whether we see a great hack or a fake one remains to be seen. It’s time for patience and discipline.”
A screenshot accompanying the Binance order book confirms that the bulls have breached several selling walls.
“Things are getting interesting,” Material Indicators added in the comments on the chart.
BTC/USD order book data (Binance). Source: Material Indicators / Twitter
Characteristic of the current climate, some have remained resolutely risk-averse on Bitcoin despite year-to-date gains close to 20%.
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Among them was the famous trader Il Capo of Crypto, who classically described the current price action as “one of the biggest bull traps I have ever seen.”
“The bullish euphoria is real, and the price is still below 20K,” he added.
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Michael Van de Poppe, founder and CEO of trading firm Eight, warned against overly optimistic reactions to Bitcoin’s price performance.
“Funny though, if you look at social media, it’s a huge euphoria. If you see a graph, you have to zoom out a lot to see the whole graph,” he said.
“Bitcoin Still – $50,000 15 Month Ago”.
Bitcoin wakes up from ‘volatility slumber’
Despite its continued strength, Bitcoin’s recent rally contrasts sharply with the apparent absence of volatility we’ve seen since the FTX crash in early November.
Related: Bitcoin Gains 300% in the Year Before the Latest Halving – Is 2023 Different?
For on-chain analytics firm Glassnode, such behavior was arguably due to change sooner rather than later, especially given its persistence through the closing of the annual 2022 candle.
“The 2022-23 holiday period has been historically uneventful, and it is rare for conditions like these to last for so long,” she wrote in the latest edition of her weekly newsletter, “The Week On-Chain,” which came out Jan. 9. .
“Past occasions when volatility of Bitcoin and Ethereum has been so low have preceded highly volatile market environments, with previous examples trading both high and low.”
Describing this phenomenon as a “volatility slumber,” Glassnode added that “on-chain activity for the two major currencies remains very weak, despite the short-term stumble after FTX.”
It concluded, “Using both on-chain activity, and achieved cap reductions, it is safe to say that the excesses of H2-2021 have been largely expelled from the system.”
“This process has been painful for investors, but it has brought market valuations closer to the underlying fundamentals.”