Key points:
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Bitcoin whales take the blame as “spoofy” transactions send BTC price action below $110,000.
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The Bitcoin “whale playbook” means that price is repeating behavior from earlier in August.
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US PCE inflation data is under the microscope as the next potential market mover.
Bitcoin (BTC) fell nearly 3% Friday as attention again focused on whale selling.
“Spoofy” Bitcoin price moves raise suspicions
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell by $3,000 in hours to local lows of $109,436 on Bitstamp.
As crypto long liquidations hit $350 million over 24 hours, traders placed the blame on whales.
“This isn’t noise. It’s the whale playbook,” popular trader Merlijn wrote in part of an X post on the day.
Merlijn flagged large inflows into market maker Wintermute involving BTC and the largest altcoin, Ether (ETH).
As Cointelegraph continues to report, whale selling pressure has influenced BTC price behavior throughout August, resulting in a trip below $109,000 earlier this week.
“$BTC has been doing the same thing again and again,” fellow trader BitBull continued, describing a pattern of consolidation, capitulation, breakouts and rallies.
“Looking at the BTC chart, we are in the capitulation phase. This could last for a few weeks and will provide good entries. Keep an eye on it,” he told X followers.
Keith Alan, co-founder of trading resource Material Indicators, agreed that the actions of liquidity owners appeared manipulative.
Alan brought back the entity he had previously dubbed “Spoofy The Whale,” referring to deliberate liquidity shifts to influence price action and trap other traders.
“Looks like ‘Spoofy’ is up to his usual games which adds some predictability to the short term price action,” he summarized in part of an X post.
Crypto markets uncertain into US PCE print
Other factors that play into BTC price weakness include macroeconomic tensions surrounding US inflation data.
Related: Bitcoin can still hit $160K by Christmas with ‘average’ Q4 comeback
The Federal Reserve’s “preferred” inflation gauge, the Personal Consumption Expenditures (PCE) Index, was due at 8:30 am Eastern Time.
Inflation data is of prime importance to crypto and risk assets ahead of the Fed’s predicted interest-rate cut in September.
“Fed’s favorite gauge could either fuel the dump… or light the relief rally,” crypto analysis host Kyle Doops argued, adding that Bitcoin was “wobbling” ahead of the PCE print.
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.
