Bitcoin (BTC) shed 4% on Jan. 7 as “predictable” BTC price action put whales in the spotlight.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin “spoofing” sees price support disintegrate
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it dipped below $98,000.
The move came amid macro reactions to US Job Openings and Labor Turnover Survey (JOLTS) data, which showed a hiring surge in a boost to the labor market.
“Market catalyzed lower on JOLTS rising, however without initial jobless claims going up a rising JOLTS means one thing – JOB CREATION,” popular trader and YouTube channel host Matt Cowart responded in a post on X.
“Excited to let the market fall today and back into longs tomorrow.”
Fully reversing snap gains from the day prior, Bitcoin was at the mercy of large-volume traders as recently placed support disappeared.
Reacting, Keith Alan, co-founder of trading resource Material Indicators, labeled the practice “spoofing” — the deliberate shifting of liquidity on order books by entities with large amounts of capital.
“Spoofs are annoying, but they do tend to facilitate some predictable price action for Bitcoin,” he summarized.
Spoofing can significantly impact price action on short timeframes, with Bitcoin seeing swings due to liquidity appearing and disappearing above or below the price.
Alan uploaded a BTC/USDT pair chart on Binance, highlighting the removal of several recent liquidity blocks.
BTC/USDT order book data. Source: Keith Alan/X
Continuing, popular trader Skew noted that late long BTC positions had been “wiped out” thanks to the retracement.
BTC liquidations (screenshot). Source: CoinGlass
Data from monitoring resource CoinGlass confirmed that more than $30 million of longs were liquidated in a single hour on the day.
“The retest is in progress and it may be a volatile one,” fellow trader and analyst Rekt Capital added in his latest market analysis.
“A Daily Close above $101,165 (black) is needed to confirm a successful retest.”
BTC/USD 1-day chart. Source: Rekt Capital/X
Bearish BTC price predictions return
Earlier,…
..
