Bitcoin (BTC) is being restricted at $87,500 due to manipulation by one or more large investors, new analysis suggests.
The latest market analysis from trading resource Material Indicators on March 20 illustrates the reason BTC/USD is ensnared in its existing range.
“Spoofy the whale” blamed for BTC price confinement
Bitcoin has successfully maintained $80,000 as support for more than a week while reaching two-week peaks of $87,500 as of March 20.
Despite experiencing broad fluctuations across risk assets, BTC/USD might have risen even higher had it not been for the actions of high-volume trading entities on exchange order books.
Analyzing global trading platform Binance, Material Indicators posited that shifting blocks of sell liquidity above the price were keeping it anchored within a specific zone — a typical manipulatory tactic referred to as “spoofing,” which has frequently been employed by whales previously.
“If you are curious why Bitcoin hasn’t been able to surge beyond $87.5k yet, the cause is price suppression from Spoofy the Whale,” it concluded in a post on X.
BTC/USDT order book liquidity data. Source: Material Indicators/X
An accompanying graph indicates that the liquidity in question currently exists at $89,000. It likewise monitors investor order categories, showcasing all except the largest “whale” trades distributing.
In discussing the data, Material Indicators suggested that support at the recent multi-month lows of $76,000 was inadequate as a solid market floor.
Bitcoin bulls continue the fight for crucial trend lines
Meanwhile, popular trader Daan Crypto Trades mentioned that the current low-timeframe zone of interest at $84,000 was vital for bulls moving ahead.
Related: Bitcoin futures ‘deleveraging’ wipes $10B open interest in 2 weeks
“The bulls need to maintain the $84K-$85K range to sustain the momentum. Otherwise, you’re at risk of revisiting those lower liquidity clusters that could result in a full retracement as the price remains volatile,” part of his X post elucidated.
“The local market structure is attempting to transition into a minor uptrend, but the bulls must intervene and maintain it or it will merely be a swift deviation/stop hunt.”
BTC/USDT liquidation heatmap. Source: Daan Crypto Trades/X
Daan Crypto Trades emphasized further attention on the 200-day simple moving average (SMA) and exponential moving average (EMA), significant bull market trendlines that bulls are currently attempting to convert into support around $85,000.
BTC/USD 1-day chart. Source: Daan Crypto Trades/X
This article does not contain financial advice or recommendations. Every investment and trading action bears risk, and readers should conduct their own investigation prior to making a decision.
