Bitcoin order book liquidity manipulation resurfaces as analysts suggest key price movements are still "brewing." Whether bulls can defend the $104,000 level remains a focal point.
Key Takeaways
- Bitcoin's weakness intensified after Wall Street opened, with analysts warning of a potential "rug pull" at $104,000.
- Bulls have minimized panic responses to downward triggers despite mounting pressure.
- The US dollar shows signs of rebounding after hitting a three-year low.
On June 17, Bitcoin dipped below $105,000, with experts noting the "big move" hasn’t arrived yet.
Bitcoin Price Action Is "Brewing," Say Traders
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD hitting a daily low of $104,401 after Wall Street’s opening bell.
Eleven consecutive red hourly candles suppressed bullish momentum, while order book analysis warns of accelerated downside risks.
👉 Why Bitcoin liquidity manipulation matters
"This is how manipulation unfolds in Bitcoin’s order book," noted Material Indicators on X, referencing shifting bid liquidity during the drop. "If price breaks under $105K, prepare for a rug pull at $104K."
Liquidity "spoofing" is common in crypto markets, where large traders influence prices via deceptive orders.
Material Indicators acknowledged earlier: "If bulls push above $108K, the path to $110K opens wide."
Trader Skew remained cautiously optimistic, highlighting traders’ restraint amid geopolitical tensions. However, he warned volatility is inevitable.
"Current ~3% retracement hasn’t triggered panic, though hedging is evident on lower timeframes. Previous drops saw ~5% declines with aggressive shorts and spot selling," Skew wrote on X. "This implies the real volatility is still brewing."
Oversold Dollar Suggests Potential Comeback
Gold prices fell as the dollar signaled a bullish divergence, with markets downplaying Middle East conflict escalation risks.
The Kobeissi Letter dismissed fears of a global war: "Despite Israel-Iran tensions, oil rose just ~2% today. Markets aren’t pricing this as a long-term hurdle."
The US Dollar Index (DXY), typically inverse to Bitcoin, hinted at recovery from multi-year lows.
"Asset managers are heavily short the dollar," said analyst Guilherme Tavares. "The last time positioning was this bearish, DXY rallied sharply. RSI shows deep oversold conditions with clear bullish divergence."
👉 How dollar strength impacts Bitcoin
FAQ
1. Why is $104,000 critical for Bitcoin?
It’s a psychological and liquidity support level. A breakdown could trigger cascading sell-offs.
2. What’s "liquidity spoofing" in crypto?
Large traders place fake orders to manipulate price movements, creating false market depth.
3. Could the dollar’s rebound hurt Bitcoin?
Historically, a stronger DXY pressures BTC. Monitor RSI and macroeconomic signals for reversals.
4. Is geopolitical tension affecting Bitcoin?
Minimal so far. Markets view Israel-Iran conflicts as contained, with oil and gold reactions muted.
5. When might Bitcoin’s "big move" happen?
Analysts cite accumulating volatility signals but no immediate catalyst. Watch order book liquidity shifts.
6. Should traders hedge now?
Skew notes increased hedging activity but advises against overreacting to sub-5% retracements.
This article contains no investment advice. All trading carries risk; conduct independent research before deciding.
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