Bitcoin Price Capped at $87,500 by Whale Manipulation on Binance

Bitcoin's price has been restricted to a maximum of $87,500 due to manipulative activities by large-volume trading entities, commonly referred to as "whales." These whales are employing a tactic known as "spoofing" on the global trading platform Binance. Spoofing involves placing large orders with no intention of executing them, thereby manipulating the market to suppress the price of Bitcoin.

According to the analysis provided by trading resource Material Indicators, the liquidity above the current price is being manipulated to keep Bitcoin within a specific range. This manipulation is evident in the order book data, which shows significant liquidity at $89,000. The data also indicates that most investor orders are distributed, with the exception of the largest "whale" transactions. This suggests that the support at the recent multimonth lows of $76,000 may not be sufficient to act as a firm market floor.

Despite the broad volatility across risk assets, Bitcoin has managed to sustain $80,000 as support for over a week, reaching two-week highs of $87,500 on March 20. However, the manipulative activities of these whales are preventing Bitcoin from rallying past $87,500. Material Indicators summarized the situation, stating that the price suppression is due to the actions of "Spoofy the Whale," a term used to describe these large-volume trading entities.

Meanwhile, popular trader Daan Crypto Trades highlighted the importance of the current low-timeframe area of interest at $84,000 for bulls. He noted that holding onto the $84K-$85K region is crucial for maintaining momentum. Failure to do so could result in a visit to lower liquidity clusters, potentially leading to a full retrace as the price remains choppy. Daan Crypto Trades also paid attention to key bull market trendlines, such as the 200-day simple moving average (SMA) and exponential moving average (EMA), which bulls are currently trying to flip to support at around $85,000.

The analysis suggests that while Bitcoin has shown resilience in sustaining support at $80,000, the manipulative activities of whales are a significant barrier to further price increases. The market's current structure indicates that bulls need to step in and maintain the momentum to prevent a potential retrace. The situation underscores the influence of large-volume trading entities on the Bitcoin market and the need for vigilance in identifying and addressing manipulative practices.