Why Bitcoin Price Struggles to Break Above $87.5K: Whale Manipulation and Market Dynamics

Bitcoin’s price action has recently been constrained below the critical $90,000 mark, with new analysis attributing this to the influence of whale manipulation, particularly a tactic known as "spoofing." According to Material Indicators, a trading analysis resource, Bitcoin's price upside appears capped below $87,500 due to these large-volume market moves, leaving traders and investors questioning when, or if, the cryptocurrency can break its current range.

The Whale Behind the Price Suppression

Bitcoin has managed to maintain support at $80,000 for over a week, reaching two-week highs of $87,500 on March 20. Despite broader market volatility affecting risk assets, Bitcoin’s price could have surged further if not for manipulative tactics carried out by large trading entities, known as "whales."

Material Indicators analyzed the liquidity on Binance and concluded that large blocks of ask liquidity were being strategically placed above the current price, preventing Bitcoin from rallying past key resistance levels. This market manipulation technique, known as "spoofing," involves placing large orders with no intention of filling them, which creates a false sense of market depth and discourages price movement beyond certain levels.

According to Material Indicators, this form of manipulation—dubbed “Spoofy the Whale”—has been a major factor behind Bitcoin's inability to break above $87.5K. The analysis highlights that significant liquidity is currently concentrated around $89,000, acting as an artificial ceiling that Bitcoin struggles to surpass. The chart accompanying the analysis tracks investor orders and shows that aside from whale-sized transactions, most of the smaller trades are dispersed across lower levels, further constricting upward momentum.

The $84K-$85K Support Zone: A Crucial Battleground for Bitcoin Bulls

As Bitcoin struggles to push higher, popular trader Daan Crypto Trades pointed out the importance of the $84,000-$85,000 region for bulls. According to him, this price zone is critical for sustaining upward momentum. If Bitcoin fails to hold this range, it risks retracing to lower liquidity areas, where price action could become more volatile and potentially lead to a full pullback.

In his analysis, Daan emphasized the significance of the 200-day simple moving average (SMA) and the exponential moving average (EMA), key technical indicators that are often used by traders to gauge the health of a trend. Bitcoin bulls are currently working to flip these trendlines, which sit around the $85,000 mark, into support levels. A failure to maintain these key trendlines would increase the likelihood of a price retrace, threatening to undo the recent upward moves.

Market Structure and Liquidity Clusters

Despite the ongoing battle at these critical levels, the overall market structure remains choppy. As Bitcoin grapples with spoofing tactics and key support levels, its price action remains uncertain. Traders are closely monitoring the liquidity clusters, which could dictate whether the cryptocurrency can break through the $87.5K resistance or face a deeper correction.

Material Indicators’ data suggests that the $76,000 level, although a recent low, may not offer enough support to act as a firm market floor, and the risk of a pullback remains as long as spoofing and whale manipulation continue to play a significant role in price suppression.

Conclusion: The Road Ahead for Bitcoin

Bitcoin's price struggles to move past the $87.5K level, with whale manipulation tactics like spoofing and significant liquidity blocks acting as key factors behind the current range-bound behavior. As traders keep an eye on crucial support levels, the bulls must defend key price zones, such as $84,000-$85,000, to maintain upward momentum and avoid a potential correction. With market dynamics at play and manipulative forces in action, Bitcoin’s path forward remains uncertain, and its next move will depend on whether it can break free from these constraints or face a deeper retracement.