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

Bitcoin (BTC), which was at $44,000 for the second time, touched $44,000 on Jan. 12, amid growing divergence of opinion over whether the bottom is “in.”

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

Cointelegraph Markets Pro and TradingView data showed that the $44,000 mark acted as local resistance on Thursday. This was in response to forecasts that $46,000 would soon return.

Bitcoin was generally higher overnight after the release of the United States inflation data. However, for some people, this is not the right time to be overconfident.

“BTC starts to feel a bit toppy (local), though asks are diffused by some key resistance levels,” Material Indicators tweeted in a recent update.

“Some bitcoin bulls might show up to clear some levels, but the entire herd will have to show up and clear them all.”

Material Indicators suggested a good opportunity for “de-risking,” and highlighted order book flux. This was the focal point of a serious warning about an upcoming crash on Wednesday.

Others, however, believed that a price squeeze could ultimately lead to the upside and penalize latecomers short traders.

Observing perp funding going increasingly negative as price grinds higher, it appears that the real liquidation wave may be on the upside https://t.co/ml8h5t0Skg
Zhu Su (@zhusu), January 12, 2022

Crypto Ed, a popular trader, started to feel optimistic about significantly lower levels of volatility being overturned for good.

He uploaded a snapshot of his predictive chart and argued that if BTC/USD were to grind higher, it would set the stage for a higher low construction as part a solid recovery.

Good morning everyone! Tnx for allowing me to take a break from twitter, but I’m back now to tell you that the #BTC chart is making my belief about “bottom” stronger. You can see more confirmation here, but I am getting excited if we get the 5th leg today. pic.twitter.com/yW07BSdrYC
— January 13, 2022, Crypto_Ed_NL (@Crypto_Ed_NL).

What length of relief can you expect?

An examination of funding rates across exchanges showed only a slight shift overnight. The dominant values were neutral to negative.

Related: A Bitcoin run to $44K could be a relief bounce according to traders, citing a repeat December’s “nuke”

This is in stark contrast to the recent weeks in which a falling spot price was met with positive funding.

Chart of Bitcoin funding rates. Source: Coinglass

BTC/USD attempted to break the $44,000 barrier at the time of writing. However, each drawdown was stopped by buyers.

https://cointelegraph.com/news/topped-or-bottomed-traders-at-odds-over-whether-bitcoin-will-keep-rising

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Donna Burk– Business News My Name is Donna Burk and I am also the main source from the ‘Dailynewssheet.com’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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