Bitcoin (BTC) Traded at $81417, Extending Its Weekend Slide from Highs Near $85000

Bitcoin (BTC) traded at $81,417 on Monday, extending its weekend slide from highs near $85,000. The continued drop raised fresh concerns over whale-driven manipulation

Bitcoin (BTC) price slid further on Monday, extending its weekend slide from highs near $85,000. The cryptocurrency traded at $81,417 by press time.

As Bitcoin slid further, fresh concerns arose over whale-driven manipulation, especially with spoofing tactics and thin liquidity in play.

Bitcoin faces an uphill battle to sustain any recovery.

A liquidation heatmap shared by Ufo Calls showed liquidity piling up above $85,000. "A short squeeze is incoming," the account posted, citing concentrated short positions on Binance’s BTC/USDT pairs.

Bitcoin futures liquidation heatmap. Source: Ufo Calls on X

One large-volume entity was engaging in brazen spoofing behavior, according to Material Indicators' Keith Alan.

The suspected whale, dubbed "Spoofy," used ask liquidity to suppress price and force BTC down from $87,500, aiming for bids at $78,000, claimed Alan.

"This whale is buying the dip and has bids laddered down to $78K."

BTC order book data for Binance. Source: Material Indicators' Keith Alan

He backed the claim with annotated Binance order book data. The charts showed clusters of spoof orders used to guide price downward over the last three weeks.

Bitcoin CME Gap Fills As Traders Eye Support Levels

BTC's pullback also filled a key gap in the Chicago Mercantile Exchange (CME) futures market. According to Rekt Capital, the gap between $82,000 and $85,000 had long been an area of interest.

"The general CME gap has now been filled," the analyst posted on X.

BTC/USDT 15-minute chart with CME futures data. Source: Daan Crypto Trades

Daan Crypto Trades described the weekend’s action as volatile, noting that Bitcoin managed to reclaim most losses.

However, he warned a new CME gap could emerge depending on Monday’s open.

"If BTC price opens above the $85,000-$92,000 range, we might see another liquidity-driven rally."

But with Bitcoin failing to sustain gains above $85,000 despite bouncing back from lows of $79,000, it remains to be seen if another leg down could unfold.

"We're still in the 5th wave and bear market," Brandt added.

One trader, known as Ted, suggested Bitcoin remains in a Wyckoff-style re-accumulation phase.

The drop below $85,000 was part of an engineered panic to shake out bulls.

"Once BTC goes above $92K, bears will get rekt."

Still no signs of a bottom yet.

Expecting more sellers to step in if we get a decent bounce.

Expecting a WTI recovery to help rally the markets out of this oversold territory.

We're still in the 5th wave and bear market.

— Peter Brandt (@BrandtChart) August 20, 2024

However, sentiment remained mixed.

Altcoin Sherpa called the current range "support," but admitted price action lacked clarity.

"This region is pretty dense… everything is ugly on the 1W."

This 85-92K range is turning into support.

Not sure what to make of this move. BTC is still in a 5th wave (Elliott Wave) and the 4HR chart shows a bearish divergence.

This region is pretty confusing… everything is ugly on the 1W.https://t.coinsherpa.com/elliot-wave-guide

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