Bitcoin regains $25K amid hope record China easing will boost BTC price

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Bitcoin (BTC) took another day to tackle $25,000 on Feb. 20 as analysts continued to warn of market manipulation.

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BTC/USD 1 hour candlestick chart (Bitstamp).Source: Trading View

Bitcoin backed by the ‘notorious BID’

Cointelegraph Markets Pro and TradingView At the time of writing, it showed BTC/USD making up losses from near the weekly close and approaching $25,000 again.

However, the bulls still failed to trigger a reversal in favor of the Resistance, and whale activity on the exchange raised suspicions.

In its latest update, the monitoring resource Material Indicators revealed that a large number of traders have artificially “thinned” the resistance overhead, increasing the likelihood of BTC/USD moving higher.

Co-Founder Keith Allan Referenced Liquidity Wall in Auctions Pushing Spot Prices, What He Called ‘The Infamous Auction’

“Multiple rejections from $25,000 are perfectly correlated with BTC macro TA, which is a valid reason for TP at these levels, but Notorious BID still looking to push prices higher,” tweeted has said.

“I’m still scalping the longs based on what’s happened so far and the potential for liquidity to move up.”

material index Added “From a TA perspective, this should be the local top, but Notorious BID still runs the Binance orderbook.”

“They are distributing BTC ask liquidity from the $25,000 to $25.5,000 range to active trading zones, so resistance is thin,” some of the comments read further.

A potential scheme among such traders could trigger a massive price rally, with retail investors piling up or going long, and then whales getting stuck distributing BTC into the market at higher levels. there is.

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BTC/USD orderbook data (Binance). Source: Keith Allan/Twitter

China Could Boost Cryptocurrencies For “Liquidity Addicts”

Meanwhile, with U.S. markets closed for a holiday, one analyst looked to the long-term implications of moves from China.

RELATED: ‘Snapback’ to $20,000? 5 Things You Need To Know About Bitcoin This Week

In addition to potentially allowing retail investors in Hong Kong access to previously banned crypto, the central bank of China injected a record $92 billion in liquidity into the economy on February 17. bottom.

“Most analysts have focused on how the Fed tightening will revalue risk assets this cycle, but have not considered the scale of easing in the East,” said the popular Twitter account Tedtalksmacro claimed in a thread.

Unlike the United States, where the Fed has increased liquidity through quantitative tightening (QT), China is doing the opposite, he said. In 2020, under the Fed’s COVID-19 quantitative easing (QE), risky assets, including cryptocurrencies, marked his 18-month bull market.

“Cryptocurrency is not tied to any particular economy or entity, rather it is a liquidity junkie, with risk-hungry investors desperate to get their hands on cash and bet on the fastest horse. is exactly what is going to happen in China this year,” the thread continued.

As reported by Cointelegraph, U.S. liquidity has already become a major talking point when it comes to crypto performance, with former derivatives giant BitMEX CEO Arthur Hayes predicting that the second half of 2023 will continue to be an issue. I expect the shaking to continue.

“Of course, not all the cash injected by the People’s Bank of China will be a risky asset.

“As we saw in Europe and the US in 2020, increased central bank liquidity = increased prices of risky assets (BTC, etc.).”

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BTC/USD vs. US liquidity annotated chart. Source: Tedtalksmacro/ Twitter

The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views or opinions of Cointelegraph.