BTC price sets new 19-month high in ‘Choreographed’ Bitcoin whale move
Bitcoin (BTC) bounced back above $42,000 on December 5th as analysis raised suspicions of market manipulation.
Analysis: New Bitcoin auctions are not “organic”.
Data from Cointelegraph Markets Pro and TradingView showed a correction in BTC price, pushing BTC/USD to $42,498 on Bistamp.
These beat the 19-month highs set the previous day, a short-lived resurgence in the overall euphoric atmosphere in crypto.
As Bitcoin continues to recover lost ground in mid-2022, however, warnings about the rally's sustainability continue to creep in. These are focused on the behavior of large traders, also known as whalers.
In a thread about the incident on X (formerly Twitter), trading inputs Material Indicators explained that these traders can intentionally coordinate high prices and sell with minimal slippage, based on indications of order book liquidity.
The more liquidity available near the target selling point, the better a larger selling price.
“We've seen the actual play at $50M at $35k buy wall in a week, and it works most of the time. We're now at $50m at $38.5k,” Material Indicators noted, calling the current orderbook action a “strategically coordinated distribution play.”
The analysis is unlikely to return to $38,500, but new bid accounts – including one at $41,500 – were not “organic”.
That said, anticipation over both macroeconomic changes and the United States' first approval of a Bitcoin spot exchange-traded fund (ETF) could easily lead to normalization next year.
“We could see this rally extend as BTC liquidity moves strategically across the board,” Material Indicators forecast.
“The optimism around the December FED rate decision and the January ETF decision could lift things up and fuel excitement, so be prepared for what comes next.”
$48,000 forms the next BTC price target.
Other market analysts have viewed the short-term BTC price signals similarly.
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Prominent trader Daan CryptoTrades pointed out that open demand was waning during the consolidation phase that preceded the day's Wall Street open.
#Bitcoin Consolidating is also decreasing as open interest.
Maybe some long swells that are increasing profits here.
A good sized wall below cost is available at $41k. pic.twitter.com/OunDBN6EPa
— Daan Crypto Trades (@DaanCrypto) December 5, 2023
For trader, analyst and podcast host Scott Melker, meanwhile, the four-hour chart said it all.
“Bitcoin has consistently broken above ‘bearish' ascending patterns in a bull market. And this is currently being tested as support,” X comments in the accompanying graphic.
Highlighting it further, the popular social media analyst known as Mustu sees no reason why the current bull market in BTC price patterns is any different from its predecessors.
“The $48,000 is unavoidable. If this breaks, I see ~$60,000 for Bitcoin in the near future,” he argued with a chart showing price levels divided by waves.
“In the past, BTC has always returned to wave (B). Why would this time be different?”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
