Bitcoin’s (CRYPTO: BTC) sudden surges and declines have some traders worried that the average retail investor may be deterred from investing in the cryptocurrency even when it begins to make a true recovery.
What Happened: On-chain analyst and crypto trader PlanC told his followers in a tweet that it would take “one hell of a breakout” to convince people that another Bitcoin move up is legitimate.
#Bitcoin has cried wolf so many times over the last few months on these fake moves up, it is going to take one hell of a breakout to convince people at this point.
— Plan©️ (@TheRealPlanC) June 7, 2022
A huge percentage of people will not believe the, "real" move when it actually comes. #Crypto
As per data from Benzinga Pro, the asset has been trading between a low of $29,440 and a high of $31,448 over the last day, with most of its price action coming from sharp moves up and down over a shorter time frame.
According to one on-chain analyst, most of these positive price movements have not been driven by authentic bids.
A few hours later, entry of 109,218,776 USD to the spot market. Then it decreases so they have been spent. Gasoline to raise the spot price.
— M_Ernest_₿ (@M_Ernest_) June 6, 2022
[2/3] pic.twitter.com/RwBlyyBLu3
32k resistance level (2.220 BTC), close out of positions?
— M_Ernest_₿ (@M_Ernest_) June 6, 2022
Entry of 2.360 BTC in the derivatives market from a portfolio >10k BTC... pic.twitter.com/IwXL0BRJUI
Most of the market manipulation came from whale activity, resulting in smaller holders being squeezed out of their positions entirely.
See Also: $53M Bitcoin Shorts Liquidated In 1 Hour After Apex Coin Sharply Rises
Crypto exchange order book data analyzed by Material Indicators reported an end to some amount of the whale spoofing observed over the last few days.
Looks like the whale we've been watching spoof for over a week finally unloaded some #BTC. The $60M in bids we saw pop up just above $29k was broken into smaller blocks, moved into the active #trading range and appears to have been filled. #FireCharts https://t.co/iCsO8yQgDB pic.twitter.com/am5KQqMutM
— Material Indicators (@MI_Algos) June 7, 2022
Still, traders have remained cautious in their approach to trading Bitcoin as seen by the relatively conservative amounts of trading volume and leverage today.
