Bitcoin (BTC) shed 4% on Jan. 7 as “predictable” BTC price action put whales in the spotlight.
Bitcoin “spoofing” sees price support disintegrate
Data from CryptoMoon Markets Pro and TradingView followed BTC/USD as it dipped below $98,000.
The decision was made during a broader response to the U.S. Job Openings and Labor Turnover Survey (JOLTS) results, indicating a significant increase in job openings, strengthening the employment sector.
In a recent post on X, popular trader and YouTube host Matt Cowart stated that the market decreased as JOLTS (Job Openings and Labor Turnover Survey) increased, yet surprisingly, initial jobless claims didn’t go up. However, an increase in JOLTS typically indicates something positive – it suggests JOB CREATION.
“Excited to let the market fall today and back into longs tomorrow.”
Yesterday’s daily gains in Bitcoin were entirely wiped out, leaving it vulnerable to manipulation by high-volume traders. The previously established support level seemed to vanish, having no impact on its price.
Keith Alan, one of the co-founders at trading resource Material Indicators, referred to this tactic as “spoofing” – a strategy where significant financial entities manipulate the order books by creating false bids or asks to influence market prices.
Jokes about Bitcoin can be frustrating, yet they often lead to anticipated price fluctuations,” he concluded.
Manipulating data, known as spoofing, can substantially influence rapid changes in market prices, especially in cases like Bitcoin where price fluctuations occur due to sudden influxes or withdrawals of liquidity at prices above or below the current value.
Alan shared a Bitcoin (BTC) versus Tether (USDT) trading pair graph on Binance, emphasizing the elimination of numerous recent liquidity obstacles.
In simpler terms, as observed by a well-known trader named Skew, significant Bitcoin (BTC) positions held for a long time have been significantly reduced or eliminated due to the recent price drop, which is often referred to as a “retracement.
Information gathered from CoinGlass showed that over $30 million worth of long positions were forcedly closed within an hour on that specific day.
In his recent market analysis, Rekt Capital commented that the current retest is taking place and it could potentially be unstable or uncertain.
“A Daily Close above $101,165 (black) is needed to confirm a successful retest.”
Bearish BTC price predictions return
Earlier, CryptoMoon reported on traders’ BTC price expectations while the $100,000 mark still held.
As a crypto investor, I’ve been closely watching the market, and recently, some have pointed out a possible reversal in the bearish head and shoulders pattern on the daily chart. With Bitcoin reaching an all-time high of $108,000, I can’t help but wonder if this peak could mark the end of this particular trend.
Based on the latest pullback, as suggested by well-known trader Cheds Trading, that hypothesis seems less likely to hold true.
“$BTC daily now working on a throwback to broken LH/Right shoulder invalidation zone,” he warned.
In the following X comments, Cheds Trading expressed his view that the observed market behavior was entirely typical or regular.
Meanwhile, Scott Melker, popularly known as the “Wolf of All Streets” and a trader, analyst, and podcast host, emphasized the significance of the 50-day Simple Moving Average (SMA), which CryptoMoon had earlier reported as a crucial support level.
In simpler terms, the trader Justin Bennett warned that with testing support currently, if it’s lost, there’s a high likelihood that Bitcoin (BTC) will retest its previous low at around $92k.
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2025-01-07 19:32