Cointime

Download App
iOS & Android

BTC price sets new 19-month high in ‘choreographed’ Bitcoin whale move

Bitcoin returned above $42,000 on Dec. 5 as analysis remained suspicious of market manipulation.

BTC/USD 1-hour chart. Source: TradingView

Analysis: New Bitcoin bids are not “organic”

Data from Cointelegraph Markets Pro and TradingView showed a BTC price rebound taking BTC/USD to highs of $42,498 on Bitstamp.

These beat the 19-month peak set the day prior, with retracements being short-lived amid a general atmosphere of excitement throughout crypto.

As Bitcoin continued to reclaim ground lost in mid-2022, however, warnings over the rally’s sustainability continued to flow in. These centered on the behavior of large-volume traders, also known as whales.

In a dedicated thread about the phenomenon on X (formerly Twitter), trading resource Material Indicators explained that from order book liquidity cues, it appeared that these traders could be deliberately coordinating higher prices in order to sell into an uptrend with minimal slippage.

The more liquidity available near the intended selling point, the better value a major sell-off would bring.

“We saw the exact game played over the wknd with a $50M buy wall at $35k, and it often works. Now we have $50M stacked at $38.5k,” Material Indicators noted, calling current order book action a “strategically choreographed distribution game.”

The analysis reasoned that a return to $38,500 was unlikely, but that new blocks of bid liquidity — including one at $41,500 — were not “organic.”

That said, upside continuation could easily form the norm into next year, as a sense of anticipation over both macroeconomic changes and a United States approval of its first Bitcoin spot price exchange-traded fund (ETF) sets the tone.

“With BTC liquidity strategically moving around the game board we are likely to see this rally extend,” Material Indicators forecast.

“Optimism around the Dec FED rate decision and Jan ETF decision can push things higher and fuel euphoria, so be prepared for what comes after that.”

BTC/USDT order book liquidity data. Source: Material Indicators/X

$48,000 forms next optimistic BTC price target

Other market commentators eyed similarly bullish short-term BTC price signals.

Popular trader Daan Crypto Trades noted declining open interest during the consolidation phase, which preceded the day’s Wall Street open.

For trader, analyst and podcast host Scott Melker, meanwhile, the four-hour chart said it all.

“Bitcoin consistently breaks above ‘bearish’ ascending patterns in a bull market. And this one is currently being retested as support,” part of his X commentary on an accompanying graphic.

BTC/USD chart with breakout and support retest. Source: Scott Melker/X

Zooming out further, the popular social media commentator known as Moustache saw no reason for the current bull market to diverge from previous ones in terms of BTC price patterns.

“$48,000 is inevitable. If this is broken, I even see ~$60,000 for Bitcoin in the near future,” he argued alongside a chart showing price phases divided into waves.

“In the past, BTC has always returned to wave (B). Why should it be different this time?”

BTC/USD annotated chart. Source: Moustache/X
Comments

All Comments

Recommended for you

  • Making the Internet Alive Again

    The Internet is changing. Are we changing, too?

  • On Compressionism

    How a technological necessity is becoming the face of a burgeoning realm of cryptoart

  • Ethereum: The Infinite Story Machine 💫

    Yesterday, the first issue of the new ETH Investors Club (EIC) magazine went live digitally, with physical copies redeemable via NFTs on the way. The EIC effort is focused on spotlighting Ethereum’s current landscape through high-quality essays, and I’m honored that my piece, The Infinite Story Machine, was featured in the inaugural “Culture Corner” section.

  • BuildBear Labs Raises $1.9M to Accelerate Development of Web3 Tools for Secure dApp Creation

    Singapore-based BuildBear Labs has secured $1.9m in funding from investors including Superscrypt, Tribe Capital, and 1kx, as well as angel investors such as Kris Kaczor and Ken Fromm. The funds will be used to speed up development of the company's flagship platform, which provides developers with testing and validation solutions for secure decentralized applications. BuildBear Labs' platform is dedicated to dApp development and testing, offering developers the ability to create customised Private Testnet sandboxes across multiple EVM and EVM-compatible blockchain networks, with features including private faucets for unlimited Native and ERC20 token minting.

  • I Don't Like Layer 2 Anymore

    I had been quite vocal about Optimism on Twitter when it was trading at north of 5bn FDV back in June last year with a view that this red coin is criminally undervalued.

  • OnChainMonkey: Reimagining Bitcoin NFTs

    Exploring Ordinals As a Medium for Art and Programmability

  • Collusion-Resistant Impartial Selection Protocol (CRISP)

    We propose the Collusion-Resistant Impartial Selection Protocol (CRISP) to improve on MACI’s honest Coordinator assumption. By leveraging threshold cryptography and fully homomorphic encryption (FHE), we enable a distributed set of Coordinators (a “Coordinator Committee”) and shift the trust model from an honest Coordinator assumption to an assumption that there is no threshold of dishonest Coordinators in the Coordinator Committee. We propose to increase the trust model further by introducing economic disincentives for compromised Coordinators.

  • Multiple incidents of stETH being stolen and cross-chained to the Blast mainnet were discovered. The victim’s mnemonic words/private keys may have been leaked.

    SlowMist founder, Yu Xian, posted on X platform stating that SlowMist and MistTrack have received at least four cases of stETH being stolen and cross-chain transferred to the Blast mainnet. The common feature is that a small amount of ETH transaction fee is sent from an address with obvious traces (including exchanges) to the stolen address, and then stETH is cross-chain transferred to the Blast mainnet for subsequent transfer, and finally the remaining small amount of ETH in the victim's address is transferred to different ETH addresses. The known loss exceeds 100 stETH, and it is likely a group event. The mnemonic phrase/private key of these victims must have been leaked, and the attackers lurked to start on the Blast mainnet. Previously, Scam Sniffer monitoring showed that a certain address lost over 10 BTC pledged on Aave and some PANDORA due to interaction (clicking on the signature authorization) with a fake Blast airdrop website, with a total loss of approximately $717,817.

  • Hong Kong has closed the application for virtual asset trading platform licenses, and a total of 22 virtual asset trading platforms are waiting for approval.

    The Hong Kong Securities and Futures Commission website shows that the deadline for virtual asset trading platform license applications was yesterday (29th). As of the update on February 28th, there were a total of 22 virtual asset trading platform applicants.The applicants include Bybit, OKX, Crypto.com, Gate.io, HTX, Bullish, and others.Ammbr, BitHarbour, and Huobi HK withdrew their applications, while Meex had its application returned by the Securities and Futures Commission.In addition, virtual asset trading platforms operating in Hong Kong that did not submit license applications to the Securities and Futures Commission by yesterday (29th) must end their business in Hong Kong by May 31, 2024, at the latest.

  • In February, NFT sales on the Bitcoin chain were approximately US$301 million, down nearly 10% from the previous month.

    According to cryptoslam data, the sales of NFTs on the Bitcoin blockchain in February reached $301,983,035.33, a decrease of nearly 10% from the previous month's $335,121,977.66, and the fourth-highest monthly sales to date. The total number of NFT transactions on the Bitcoin blockchain in February was approximately 203,000, a decrease of about 18.4% from the previous month. In addition, there were 67,139 independent buyers and 57,724 independent sellers of NFTs on the Bitcoin blockchain last month.