Key points:
Bitcoin drops back below $113,000 at the Wall Street opening as bulls struggle to maintain support.
Price manipulation of BTC is one reason for the decline, with order-book bid liquidity being scrutinized.
Increased volatility in the crypto market is anticipated around the Federal Reserve’s Jackson Hole event.
Bitcoin (BTC) aimed for new local lows as Wednesday’s Wall Street opened, with bulls failing to stop a repeat sell-off in the US.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Pressure on Bitcoin price reintroduces “Spoofy the Whale”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping below $113,000 after initially reclaiming that level post-daily open.
At the time of writing, bid liquidity was being absorbed on exchanges, with $112,300 identified as a key level, according to CoinGlass data.
“$BTC has wiped out liquidity on both sides over the past 6 weeks while hovering around this price zone,” popular trader Daan Crypto Trades noted regarding liquidity conditions in his latest post on X.
“The largest cluster is currently near $120K, and the local range low at $112K is still relevant. Watch these areas, as they often serve as reversal zones and attract price.”BTC liquidation heatmap. Source: CoinGlass
Keith Alan, co-founder of Material Indicators, implied that an increase in bid liquidity lower in the order book — including “plunge protection” at $105,000 — may represent price manipulation.
He referred to entities he named “Spoofy the Whale” and the “Notorious B.I.D.” — both of which are known for artificially manipulating price trends recently.
“It’s premature to make any assumptions, but the effect on price direction will remain similar,” he concluded.
“Lower bids will prompt a decrease in prices.”BTC/USDT order book liquidity with whale volume data. Source: Keith Alan/X
Furthermore, commentator TheKingfisher cautioned that Bitcoin might experience further declines, which could significantly impact altcoins.
“Altcoins currently show balanced skew. A minor retrace may target high-leverage short liquidations. Momentum remains steady,” part of an X post stated for the day.
“Yet, we could see a gradual decline, chunk by chunk. While major currencies are stable, a 5% move in BTC could lead to 10–30% declines in altcoins.”Total altcoin market cap one-day chart. Source: Cointelegraph/TradingView
A positive note was shared by trader and analyst Rekt Capital, who likened current price movements to previous corrections during bull markets.
“One of the most encouraging aspects of this current pullback is that similar retraces occurred at this time in both 2017 and 2021,” he advised followers on X.
“In both 2017 and 2021, those retraces preceded upsides that hit new All Time Highs.”
All eyes on Powell at Jackson Hole
As the minutes from the US Federal Reserve’s July FOMC meeting approach, trading firm QCP Capital anticipates Friday’s address by Chair Jerome Powell.
Related: Buyers halted the decline, 5 things to know in Bitcoin this week
Under pressure to lower interest rates, Powell will speak at the Fed’s annual Jackson Hole economic symposium.
As Cointelegraph highlighted, last year saw Powell provide insights on upcoming rate cuts. His comments will be closely monitored by markets seeking confirmation that September’s meeting will yield such outcomes.
“The stakes are high: defining monetary policy’s course as markets weigh easing inflation against rising labor concerns,” QCP remarked in its most recent “Asia Color” update on Wednesday.
“Markets are currently anticipating an 80–95 % chance of a 25-basis-point cut at the September 17 FOMC, yet incoming data could swiftly alter expectations.”Fed target rate probabilities for September FOMC meeting (screenshot). Source: CME Group FedWatch Tool
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
