Key points:
Bitcoin whales are being blamed as “spoofy” transactions push BTC prices below $110,000.
The “whale playbook” indicates that price patterns are repeating from earlier in August.
US PCE inflation data is closely monitored as a potential market mover.
Bitcoin (BTC) saw a nearly 3% decline on Friday as whale selling came back into focus.
“Spoofy” Bitcoin price movements raise concerns
Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD experienced a $3,000 drop to local lows of $109,436 on Bitstamp.
As crypto long liquidations hit $350 million within 24 hours, traders pointed fingers at whales.
“This isn’t just noise. It’s the whale playbook,” popular trader Merlijn stated in an X post that day.
Merlijn noted significant inflows to market maker Wintermute involving both BTC and the largest altcoin, Ether (ETH).
Cointelegraph has reported that whale selling pressure has shaped BTC price dynamics throughout August, leading to a drop below $109,000 earlier this week.
“$BTC has been following the same pattern repeatedly,” fellow trader BitBull noted, discussing a trend of consolidation, capitulation, breakouts, and rallies.
“Analyzing the BTC chart, we are currently in the capitulation phase. This may persist for weeks and create favorable entry points. Stay alert,” he advised his X followers.
Keith Alan, co-founder of trading resource Material Indicators, concurred that the actions of liquidity holders appeared manipulative.
Alan referenced the entity he previously named “Spoofy The Whale,” alluding to calculated liquidity movements designed to influence price action and ensnare other traders.
“It seems that ‘Spoofy’ is back to usual tactics, which adds some predictability to short-term price fluctuations,” he concluded in part of an X post.
Crypto markets uncertain ahead of US PCE data
Additional factors contributing to BTC price weakness include macroeconomic pressures regarding US inflation data.
Related: Bitcoin can still reach $160K by Christmas with an ‘average’ Q4 recovery
The Federal Reserve’s preferred inflation metric, the Personal Consumption Expenditures (PCE) Index, was scheduled for release at 8:30 am Eastern Time.
Inflation figures are crucial for crypto and risk assets in light of the Fed’s anticipated interest-rate reduction in September.
“The Fed’s favored measure could either exacerbate the decline… or ignite a relief rally,” crypto analysis host Kyle Doops contended, noting Bitcoin was “wobbling” ahead of the PCE release.
This article does not provide investment advice or recommendations. All investments and trading activities involve risk, and readers should do their own research before making decisions.
