Key points:
Bitcoin whales are being pointed to as “spoofy” transactions drive BTC price below $110,000.
The Bitcoin “whale playbook” suggests a repetition of price movements from earlier in August.
US PCE inflation data is being closely examined as a potential market influencer.
Bitcoin (BTC) dropped nearly 3% on Friday as focus shifted back to whale selling.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
“Spoofy” Bitcoin price movements raise doubts
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD plummeted by $3,000 within hours, reaching local lows of $109,436 on Bitstamp.
As crypto long liquidations soared to $350 million in 24 hours, traders attributed the decline to whales.
Crypto liquidations (screenshot). Source: CoinGlass
“This isn’t just noise. It’s part of the whale playbook,” popular trader Merlijn noted in an X post on that day.
Merlijn highlighted significant inflows to market maker Wintermute involving BTC and the leading altcoin, Ether (ETH).
Source: Merlijn The Trader
As reported by Cointelegraph, the selling pressure from whales has impacted BTC prices throughout August, causing a dip below $109,000 earlier this week.
“$BTC has been following the same pattern repeatedly,” fellow trader BitBull observed, describing a cycle of consolidation, capitulation, breakouts, and rallies.
“Reviewing the BTC chart, we find ourselves in the capitulation phase. This might last a few weeks and present good entry points. Keep a lookout,” he advised his X followers.
BTC/USDT one-week chart. Source: BitBull/X
Keith Alan, co-founder of the trading resource Material Indicators, concurred that the actions of liquidity holders seemed manipulative.
He revisited the entity he previously named “Spoofy The Whale,” referencing intentional liquidity changes to sway price movements and trap other traders.
“Looks like ‘Spoofy’ is up to his usual tactics, adding a layer of predictability to short-term price actions,” he concluded in part of an X post.
BTC/USDT order-book liquidity data with whale order volume. Source: Keith Alan/X
Crypto markets uncertain ahead of US PCE report
Additional factors contributing to BTC price weakness include macroeconomic tensions surrounding US inflation data.
Related: Bitcoin can still reach $160K by Christmas with an ‘average’ Q4 recovery
The Federal Reserve’s “preferred” inflation measure, the Personal Consumption Expenditures (PCE) Index, was scheduled for release at 8:30 am Eastern Time.
Inflation data is crucial for crypto and risk assets ahead of the Fed’s anticipated interest-rate cut in September.
“The Fed’s favorite metric could either trigger a market downturn… or spark a relief rally,” crypto analysis host Kyle Doops asserted, adding that Bitcoin was “wobbling” ahead of the PCE release.
This article does not provide investment advice or endorsements. Every investment and trading decision involves risk, and readers should perform their own research before making a choice.
