Bitcoin’s upward momentum is being constrained by large-scale traders, with analysis suggesting price suppression tactics are in play.
Bitcoin Stuck Below $90K Amid Liquidity Manipulation
Bitcoin (BTC) has maintained its position above $80,000 for over a week, recently reaching a two-week high of $87,500 on March 20. However, despite broader market volatility, BTC/USD has struggled to break higher, with analysts pointing to manipulative trading activity as the key factor.
According to market analysis from trading resource Material Indicators, large-volume traders on Binance have been engaging in liquidity manipulation, effectively capping Bitcoin’s upside. This tactic, known as “spoofing,” involves placing large sell orders above the current price to create an artificial resistance level.
Whale Tactics Keep Bitcoin in a Tight Range
Material Indicators highlighted that a single whale, dubbed “Spoofy the Whale,” is responsible for suppressing Bitcoin’s price movement. The analysis suggests that shifting liquidity blocks above the current price are preventing BTC from surpassing the $87,500 mark.
“If you are wondering why Bitcoin price hasn’t been able to rally past $87.5K yet, the reason is price suppression from Spoofy the Whale,” the trading firm noted in a post on X.
The report further indicates that significant liquidity is positioned at $89,000 on Binance, effectively acting as a ceiling for Bitcoin’s price. Additionally, data shows that most transaction activity, apart from those conducted by major whales, is currently in a distribution phase rather than accumulation.
Market Support at $76K Remains Unstable
While Bitcoin has maintained its position above $80,000, Material Indicators cautioned that previous support at $76,000 might not serve as a solid market floor. This raises concerns about the potential for a further decline if buying momentum weakens.
Traders Eye Key Support Levels
Popular trader Daan Crypto Trades has identified the $84,000-$85,000 range as a crucial level for Bitcoin bulls. Maintaining this zone is essential to sustaining upward momentum.
“The bulls would want to hold on to the $84K-$85K region to keep the momentum. Otherwise, you’re at risk of visiting those lower liquidity clusters, which can end up in a full retrace as price is still choppy,” he explained in a post on X.
Daan Crypto Trades also emphasised the importance of Bitcoin holding key trendlines, including the 200-day simple moving average (SMA) and the exponential moving average (EMA), both of which are hovering around $85,000. Bulls need to establish these levels as firm support to maintain a stable uptrend.
For now, Bitcoin’s price action remains highly influenced by whale activity, leaving traders closely monitoring whether the resistance at $87,500 will break or if a deeper retracement is on the horizon.
