Bitcoin (BTC) touched $ 44,000 for the second time on January 12, amid growing disagreements over whether the bottom of the price is “in.”
Data from Cointelegraph Markets Pro and TradingView show that the $ 44,000 mark is acting as a local resistance on Thursday, following expectations that $ 46,000 could come back soon.
Bitcoin remained on a sharp rise overnight following US inflation data the day before, but for some, it wasn’t a time of overconfidence.
“BTC is starting to feel a bit annoying (local), but the question has spread to some major resistance levels,” said the Twitter account material indicator. comment As part of a recent update.
“Some Bitcoin Bulls may be displayed to clear some levels, but to clear all, the entire herd must be displayed.”
Material indicators suggested a good opportunity to “mitigate risk” and highlighted the flow of purchase orders on Wednesday, which formed the focus of serious warnings about possible conflicts.
In contrast, others believed that price “squeezing” would eventually turn up and could punish late-coming short traders.
Observing that perp funding becomes more and more negative as prices rise, the actual clearing wave may be on the upside https://t.co/ml8h5t0Skg
— Zhu Su (@zhusu) January 12, 2022
Meanwhile, popular trader Crypto Ed has begun to be optimistic about the permanent loss of significantly lower levels.
After uploading a snapshot of the forecast chart, he argued that if BTC / USD grinds higher than the day, a higher low construction stage will be set as part of a more solid recovery.
Good morning everyone!
Tnx has given me time to take a break on Twitter, but I would like to share with you that my feelings about “bottom-in” are getting stronger. #BTC chart.
I would like to confirm more, but if I get that 5th leg today, I’m excited! pic.twitter.com/yW07BSdrYC
— Crypto_Ed_NL (@Crypto_Ed_NL) January 13, 2022
How long can the relief last?
A quick look at the funding rates for the entire exchange showed only minor changes overnight, with neutral to negative values predominant.
Related: Traders quote the December “nuclear” repeat, saying that Bitcoin’s reach of $ 44,000 could be a bounce of bailouts.
Such behavior is in contrast to recent weeks when spot price declines have been met by aggressive funding.
At the time of this writing, BTC / USD continues to attempt breakouts in the $ 44,000 zone and buyers are preventing each drawdown.