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Top or bottom? Traders at odds over whether Bitcoin will keep rising

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 156 Views

$44,000 remains a focus overnight, but clear direction evades Bitcoin markets, and participants are nervous.

Bitcoin (BTC) touched $44,000 a second time on Jan. 12 amid increasing divergence of opinion about whether the price bottom is “in.” 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Data from Cointelegraph Markets Pro and TradingView showed the $44,000 mark acting as local resistance Thursday, following forecasts that $46,000 could soon return.

Bitcoin stayed broadly higher overnight following the previous day’s United States inflation data, but for some, now was not the time to become overly confident.

“BTC starting to feel a little toppy (local), although asks are diffused through some key resistance levels,” Twitter account Material Indicators commented as part of a recent update.

“Some bitcoin bulls may show up to clear a few levels, but the whole herd is going to have to show up to clear them all.” 

Suggesting a good opportunity to “de-risk,” Material Indicators highlighted order book flux, which, on Wednesday, had formed the focus of a graver warning about a possible incoming crash.

By contrast, others believed that a price “squeeze” may ultimately be to the upside and punish latecomer short traders.

Popular trader Crypto Ed, meanwhile, began to show optimism over significantly lower levels being gone for good.

Having uploaded a predictive chart snapshot, he argued that should BTC/USD grind higher on the day, the stage would be set for a higher low construction as part of a more solid recovery.

How long can the relief last?

A brief look at funding rates across exchanges revealed only a slight change overnight, with neutral to negative values dominating. 

Related: Traders say Bitcoin run to $44K may be a relief bounce, citing a repeat of December’s ‘nuke’

Such behavior runs in contrast to recent weeks, in which a declining spot price was met by positive funding.

Bitcoin funding rates chart. Source: Coinglass

At the time of writing, BTC/USD continued to attempt a breakout of the $44,000 zone, buyers preventing each drawdown.


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