Main Highlights:
Bitcoin drops below $113,000 at the Wall Street open as bulls struggle to maintain support.
Price manipulation of BTC is a potential reason for the decline, focusing on exchange order-book bid liquidity.
Increased crypto market volatility is anticipated from the Federal Reserve’s Jackson Hole event.
Bitcoin (BTC) searched for new local lows at the Wall Street open on Wednesday, with bulls unable to stop a continued US sell-off.
Bitcoin Price Pressure Revives “Spoofy the Whale”
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it slid below $113,000 after briefly reclaiming it at the daily open.
Bid liquidity was being depleted on exchanges at the time, with $112,300 emerging as a key level, according to CoinGlass data.
“$BTC has taken out considerable liquidity on both sides for the past 6 weeks, fluctuating around this price region,” noted popular trader Daan Crypto Trades in his latest post on X.
“The largest cluster now lies around $120K, with the local range low at $112K still in play. Watch these areas as they often serve as local reversal zones and/or magnets when prices approach them.”
Keith Alan, co-founder of trading resource Material Indicators, suggested that a rise in bid liquidity lower down the order book—including “plunge protection” at $105,000—could indicate price manipulation.
Alan referred to entities he termed “Spoofy the Whale” and the “Notorious B.I.D.,” both of which seem to manipulate price movements recently.
“It’s too early to draw conclusions, but the impact on price direction will remain consistent,” he concluded.
“Lower bids invite prices to drop further.”
In addition, popular commentator TheKingfisher cautioned that Bitcoin could “bleed” further, which would significantly affect altcoins.
“Altcoins currently reflect a balanced skew. We may witness a minor retracement aimed at liquidating high-leverage shorts. The momentum remains steady,” part of a post on X stated.
“Nonetheless, we could experience a gradual bleed, block by block. While major coins stay stable, a 5% move in BTC could lead to 10–30% declines in altcoins.”
A positive note emerged from popular trader and analyst Rekt Capital, who likened the current price behavior to previous bull-market corrections.
“One of the most encouraging aspects of this current pullback is that such retraces occurred at the same point in the cycle in both 2017 and 2021,” he informed his followers on X.
“In both 2017 and 2021, these retraces preceded new All-Time Highs.”
All Eyes on Powell at Jackson Hole
With the minutes from the US Federal Reserve’s July Federal Open Market Committee (FOMC) meeting anticipated, trading firm QCP Capital looked ahead to Friday’s speech by Chair Jerome Powell.
Related: Dip buyers ‘stopped the train,’ 5 things to know in Bitcoin this week
Under significant pressure to reduce interest rates, Powell will address the Fed’s annual Jackson Hole economic symposium.
As Cointelegraph noted, Powell’s speech last year hinted at forthcoming rate cuts. His language will be scrutinized by markets seeking confirmation that September’s meeting will reflect this outcome.
“The stakes are high: setting the course of monetary policy as markets weigh easing inflation against rising labor risks,” QCP remarked in its latest “Asia Color” update on Wednesday.
“Markets are currently pricing an 80–95 % chance of a 25-basis-point cut at the September 17 FOMC meeting, but incoming data can quickly shift expectations.”
This article does not constitute investment advice or recommendations. All investing and trading involves risk, and readers should perform their own due diligence before making decisions.
