Analysts say Bitcoin’s price action is looking increasingly orchestrated, as BTC taps its lowest levels since Aug. 3 amid ongoing US selling.
Market Update
Key points:
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Bitcoin heads back below $113,000 at the Wall Street open as bulls fail to clinch support.
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BTC price manipulation is one explanation for the downside, with exchange order-book bid liquidity in focus.
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More crypto market volatility is expected from the Federal Reserve’s Jackson Hole event.
Bitcoin () sought new local lows at Wednesday’s Wall Street open as bulls struggled to halt a repeat US sell-off.
Bitcoin price pressure brings back “Spoofy the Whale”
Data from and followed BTC/USD as it sank below $113,000 after initially reclaiming it after the daily open.
Bid liquidity was being taken on exchanges at the time of writing, with $112,300 now a , per data from CoinGlass.
“$BTC Took out a bunch of liquidity on both sides for the past 6 weeks, as it ranged around this same price region,” popular trader Daan Crypto Trades summarized on liquidity conditions in his .
“The biggest cluster in close proximity now sits at around $120K and of course the local range low at $112K is still in play. Keep an eye out of those areas as they often act as local reversal zones and/or magnets when price gets close to them.”
Keith Alan, co-founder of trading resource Material Indicators, suggested that more bid liquidity appearing lower down the order book — including — could be a form of price manipulation.
Alan referred to entities for whom he coined the phrases “Spoofy the Whale” and the “Notorious B.I.D.” — both apt to in recent months.
“Too soon to make any assumptions, but the influence on price direction will be the same,” he .
“Bids moving lower invites price to move lower.”
Continuing, popular commentator TheKingfisher warned that Bitcoin could “bleed” further, which would have significant consequences for altcoins.
“Altcoins currently show a balanced skew. We might see a minor retrace aimed at liquidating high-leverage shorts. Momentum remains steady,” part of an X post on the day.
“Still, we could see a gradual bleed, cascading block by block. While majors remain stable, a 5% BTC move could trigger 10–30% drops in alts.”
A silver lining came from popular trader and analyst Rekt Capital, who compared current price action to previous bull-market corrections.
“One of the most positive things about this current pullback is that this same type of retrace took place at this same moment in the cycle in both 2017 and 2021,” he X followers.
“In both 2017 and 2021, each of those retraces preceded upside to new All Time Highs.”
All eyes on Fed’s Powell at Jackson Hole
With the minutes of the US Federal Reserve’s July Federal Open Market Committee (FOMC) meeting due, trading firm QCP Capital looked to Friday’s speech by Chair Jerome Powell.
Related:
Under heavy pressure to cut interest rates, Powell will take to the stage at the Fed’s annual Jackson Hole economic symposium.
As , last year saw Powell channel details about forthcoming rate cuts. His language will be watched by markets looking for that September’s meeting will yield that outcome.
“The stakes are high: setting the path of monetary policy as markets balance easing inflation against rising labour risks,” QCP wrote in its latest “” update on Wednesday.
“Markets are currently pricing an 80–95 % probability of a 25‑basis‑point cut at the 17 Sep FOMC, yet incoming data could shift expectations quickly.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
