Bitcoin’s price took a hit as large-scale traders caused a sudden drop, disappointing those hoping for a sustained recovery.
Bitcoin briefly surpassed $66,000 but fell back quickly
On June 20, Bitcoin’s price climbed to $66,455 on Bitstamp, only to drop sharply soon after. Data from Cointelegraph Markets Pro and TradingView showed the sudden reversal, with BTC/USD losing $2,000 in value before Wall Street opened.
Whales manipulate the market
Trading resource Material Indicators attributed the volatility to large traders, or “whales,” manipulating the order book. According to data from their proprietary tools, these whales were seen spoofing bids, a tactic where fake orders are placed to create a false sense of demand.
“FireCharts shows whales spoofing bids in the order book,” Material Indicators confirmed on X (formerly Twitter). “Monday’s buy wall at $60k was pulled shortly after the daily open, and another buy wall that appeared at $66k vanished after just 45 minutes.”
Order book data from CoinGlass highlighted $64,250 as the new focal point for liquidity.
German government BTC moves onchain
Adding to the market dynamics, the movement of confiscated Bitcoin by the German government sparked discussions. Cointelegraph had reported this activity the previous day, with some analysts suggesting that such movements often mark local bottoms in the market.
“Good example yet again,” one analyst noted on X. “I can’t remember a time when sell-offs, big or small, due to government coins moving/selling haven’t marked some kind of local bottom.”
CoinGlass data indicated that both long and short BTC positions were impacted by the day’s volatility, with short positions suffering the most losses.
Mixed signals from US economic data
In the broader economic context, recent macroeconomic data from the United States offered mixed signals regarding progress against inflation. The jobless claims figures avoided a major miss, adding another layer of complexity to the market’s movements.
Summary Review: Bitcoin’s recent price action highlights the significant influence of large traders and external factors such as government asset movements. The market remains highly volatile, with substantial fluctuations driven by these powerful players.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
