Bitcoin (BTC) remains under pressure, trading below $88,000 as the market grapples with potential manipulation tactics. As trading commenced on Thursday, the focus shifted to the influence of large entities on order-book dynamics.
Recent analysis indicates that Bitcoin is experiencing concerted efforts to manipulate short-term price movements. Market data from TradingView highlights a notable weakness in BTC price action, with the cryptocurrency fluctuating within a confined range.
After a failure to maintain levels above $90,000, traders expressed growing frustration, particularly as equities and precious metals reached new highs. Keith Alan, co-founder of trading resource Material Indicators, posits that a single entity is leveraging a liquidity herding strategy to suppress the price of Bitcoin. This tactic may aim to fill their own bids or keep the price anchored towards the lower end of the spectrum ahead of the upcoming options expiry.
Alan referenced proprietary tools that track liquidations at critical price points alongside whale trading activities. He noted that significant bid liquidity is accumulating in the $85,000 to $87,500 range, potentially establishing a support level that could facilitate a rebound before the monthly close.
The warning remains clear: if Bitcoin closes below the 2026 opening level of $87,500 at the end of January, it may signal a deeper plunge into what Alan terms “Bearadise.”
Further insights from a pseudonymous trader, CW, identify $86,000 as a crucial “buying wall” supported by whale activity. He remarked on the narrowing gap between buy and sell walls, indicating an impending increase in market volatility.
Earlier forecasts based on Wyckoff analysis suggest that Bitcoin could establish a long-term low by the end of the month. This scenario could see BTC/USD dip beneath $80,000, acting as a Wyckoff “spring” event that may precede a significant recovery in the market.
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