By Chris Hollingworth 
Bitcoin (BTC) has been trading in a tight range, with a cap at $87,500 potentially due to manipulation by influential market participants known as whales. According to recent analysis by trading resource Material Indicators on March 20, BTC/USD has struggled to break above this key resistance level.
The analysis points to a specific whale, nicknamed “Spoofy,” who is believed to be responsible for keeping Bitcoin’s price pinned in a specific range by manipulating order books on global trading platform Binance. This manipulative tactic, known as “spoofing,” involves placing large blocks of ask liquidity above the current price to create the appearance of strong resistance.
Despite Bitcoin managing to hold $80,000 as a strong support level and reaching highs of $87,500 on March 20, the presence of Spoofy and other whales may be hindering further upside potential for the cryptocurrency. Material Indicators’ data suggests that liquidity levels around $89,000 are currently acting as a barrier for Bitcoin’s price to rally higher.
In addition to the whale manipulation dynamics, traders are closely watching key technical levels to gauge Bitcoin’s next moves. Popular trader Daan Crypto Trades highlighted the importance of the $84,000-$85,000 region as a critical area for bulls to defend in order to maintain positive momentum. Failure to hold this level could result in Bitcoin revisiting lower liquidity clusters and potentially experiencing a full retracement.
Daan Crypto Trades also emphasized the significance of the 200-day simple moving average (SMA) and exponential moving average (EMA) as key trendlines that bulls are attempting to flip into support around $85,000. These technical indicators play a crucial role in determining the overall market trend and sentiment for Bitcoin.
As Bitcoin continues to navigate through a volatile market environment, traders and investors are advised to exercise caution and conduct thorough research before making any investment decisions. The presence of manipulation by whales and the influence of technical factors highlight the importance of staying informed and vigilant in the cryptocurrency market.
