Bitcoin (BTC) fell below $60,000 at the opening of Wall Street on August 9 as investors watched for “irrational” whale movements.
Bitcoin order book fluctuations raise suspicions
According to data from Cointelegraph Markets Pro and TradingView, the recent BTC price rally appears to be slowing down after reaching $62,775 on Bitstamp.
Currently down 3% from its daily open, BTC/USD is facing significant resistance above $62,000, which analysis suggests could be an intentional manipulation.
“Someone placed a large sell order for $61200-$62500. That’s 12,000 BTC total,” responded X, who reviewed the Binance order book, monitoring resource CoinGlass.
“That’s a bit of a stretch.”
Popular trader Daan Crypto Trades pointed out the liquidity imbalance between buyers and sellers, with buyers still seeing lower trading volume than the previous day.
“Above price orders are $750 million, below price orders are $300 million. And that’s only possible on Binance,” he told his X followers.
“This can temporarily cool down volatility as prices are trapped between these walls. Keep in mind that the walls can come down at any time. I think it makes sense to have some consolidation.”
As Cointelegraph reported, large traders often place a series of orders above or below the spot price to move the market in a given direction. This practice, known as spoofing, is common in the cryptocurrency markets.
Mixed Thoughts on BTC Price Phenomenon
Traders were generally divided on the strength of BTC price.
Related: Bitcoin Price Must Flip $62,000 to Avoid Worst ‘Death Cross’ Outcome
While some expected another significant downtrend, others looked to the long-term trendline as evidence of a sustained recovery and subsequent uptrend.
“$BTC has moved back above the 200-day EMA, a line that has always resulted in a price surge in recent years,” said popular trader Moustache, referring to the 200-day exponential moving average at $59,438.
Rekt Capital, a trader and analyst, hoped the bulls would be able to break out of the downtrend by the daily close.
Stacks podcast host Luke Martin noted on August 8 that Bitcoin had its second-best day in history in terms of market cap growth.
This represents an increase from $1.08 trillion to $1.21 trillion in single-day candle prices, while Bitcoin’s share of the overall cryptocurrency market cap increased by about 0.4%.
As Cointelegraph reported, dominance reached a record high of 58%, the highest in over a year.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.