Bitcoin whale games get traders nervous as 12K BTC appears for sale
The crypto market faced heightened tension recently as Bitcoin (BTC) witnessed notable activity in its order books, sparking discussions of possible market manipulation. On August 9, 2024, Bitcoin dipped below the crucial $60,000 threshold during the Wall Street opening, causing concern among traders and investors. This drop came after Bitcoin reached a daily high of $62,775 on Bitstamp, signaling potential volatility ahead.
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD experienced a downturn of approximately 3% from the daily open, indicating significant resistance at the $62,000 level. Analysis from various market observers suggested that this resistance could be a product of intentional manipulation, as large sell orders were placed within the $61,200 to $62,500 range. In total, these orders amounted to 12,000 BTC, a volume that raised eyebrows among market participants. CoinGlass, a market monitoring resource, highlighted this anomaly on social media platform X, describing the sell orders as “somewhat unreasonable.”
This activity drew attention to the Bitcoin’s order book on major exchanges, particularly Binance. Daan Crypto Trades, a popular trader and analyst, noted an imbalance between the bid and ask liquidity, highlighting a disparity between the $750 million in sell orders above the current price and $300 million in buy orders below it. This significant difference, especially on a single platform, suggested that the market could experience a temporary reduction in volatility as the price became “stuck” between these walls of liquidity. However, as Daan Crypto Trades cautioned, these walls could be removed at any time, which could potentially lead to sharp price movements.
The practice of placing large-volume orders to influence market direction, known as “spoofing,” is not uncommon in cryptocurrency markets. Spoofing involves traders placing a series of buy or sell orders to create a false sense of market sentiment, subsequently withdrawing these orders to allow the market to react accordingly. This tactic can lead to significant price swings and contribute to the volatility seen in the crypto space.
Among these developments, traders and analysts expressed mixed opinions about the current state of Bitcoin’s price trajectory. While some anticipated a substantial downward move, others pointed to long-term trendlines and historical data to argue for a sustained recovery and potential further upside. Popular trader Moustache emphasized the significance of Bitcoin reclaiming the 200-day exponential moving average (EMA), located at $59,438. This technical indicator has historically acted as a key support level, with previous reclaims often leading to sharp price increases.
Rekt Capital, another trader and analyst, expressed hope that bullish momentum could lead to a breakout from the prevailing downtrend by the daily close. Such a breakout could potentially signal a reversal in market sentiment and pave the way for further gains.
In a notable observation, Luke Martin, the host of the Stacks podcast, highlighted that Bitcoin had experienced its second-best day in history in terms of market capitalization growth on August 8. On that day, Bitcoin’s market cap increased from $1.08 trillion to $1.21 trillion in a single daily candle. Furthermore, Bitcoin’s dominance of the total crypto market cap saw a marginal increase of around 0.4%, reaching a maximum of 58%. This marked a one-year high, signaling Bitcoin’s continued influence in the broader cryptocurrency market.
So concluding all, the significant sell-side liquidity in Bitcoin’s order books remains a focal point of discussion. While the potential for market manipulation looms large, the resilience of Bitcoin’s long-term trendlines offers a glimmer of hope for those betting on a sustained recovery. As always, the crypto market’s inherent volatility and unpredictability underscore the importance of caution and prudent risk management for all market participants.
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