Bitcoin Hits Two-Month High: Is The Price Boost Genuine?
• Bitcoin (BTC) hit a two-month high of $21,455 on Jan. 19th.
• Research suggests the move may have been “choreographed,” and not a natural phenomenon.
• Bids placed on the 13th have attracted twice as much liquidity, making the move short-term bullish.
Bitcoin (BTC) made impressive gains on Jan. 19th, with the cryptocurrency hitting a two-month high of $21,455 on Bitstamp. Data from Cointelegraph Markets Pro and TradingView showed the cryptocurrency consolidating above $21,000, following the surge in price.
However, some experts believe the move may not be a natural phenomenon. Material Indicators, a research firm that analyzes order book composition, expressed surprise that those bidding Bitcoin higher had not yet pulled support. The firm stated that the block of bids placed on Friday the 13th had attracted over twice as much liquidity into the range, making the move short-term bullish.
Material Indicators suggested that the move seemed to be “choreographed,” noting that they were not fighting it, but were limiting exposure to manage risk. The implication is that the surge may have been artificially generated by a single or a group of individuals, rather than coming as a result of organic market forces.
The news comes as Bitcoin continues to defy predictions of a major retracement. The cryptocurrency has been in a bullish recovery since the FTX debacle, with the current price boost possibly having been orchestrated by a single entity.
The surge in Bitcoin prices has created a sense of mistrust among traders and investors, who are questioning whether the move is genuine or not. Material Indicators has attempted to shed light on the situation, although it is still unclear whether the move is a result of market manipulation or natural market forces.
In any case, the current BTC price boost appears to be a positive development, although traders and investors should remain cautious and limit their exposure to manage risk. It remains to be seen whether the surge will continue or not, but it appears that the market is still bullish on the cryptocurrency.