Reasons Why Bitcoin’s Price Won’t Exceed $87.5K
Bitcoin (BTC) has recently struggled to surpass the $87,500 price level, primarily due to market manipulation by large-volume traders, known as “whales,” according to recent analysis by trading resource Material Indicators.
Whale Manipulation (“Spoofy”) Limits Bitcoin’s Price
Material Indicators identified a whale trader, nicknamed “Spoofy,” who is actively placing large sell orders (“ask liquidity”) just above Bitcoin’s current price. This tactic, known as spoofing, artificially caps Bitcoin’s upward momentum by creating resistance at key price points.
Currently, significant liquidity is positioned at around $89,000, effectively preventing Bitcoin from breaking above the $87,500 mark.
Weak Support Levels Below Current Price
Analysts also noted that recent support at $76,000 is not strong enough to serve as a reliable market floor. This weak support increases the risk of a deeper retracement if Bitcoin fails to maintain its current price range.
Critical Price Levels for Bulls
Trader Daan Crypto Trades emphasized the importance of the $84,000–$85,000 region for bullish momentum. Losing this area could trigger a move toward lower liquidity zones, potentially causing a significant price drop.
- Bulls must maintain the $84K–$85K support to sustain upward momentum.
- Failure to hold this level could lead to a full retracement and increased volatility.
Key Moving Averages Acting as Resistance
Additionally, Bitcoin bulls are currently attempting to flip the 200-day simple moving average (SMA) and exponential moving average (EMA) around $85,000 into support. Successfully doing so is crucial for maintaining bullish market structure. However, continued resistance at these moving averages further limits Bitcoin’s potential upside.
Summary of Key Points
- Bitcoin price capped at $87,500 due to whale manipulation (“spoofing”).
- Weak support at lower levels increases downside risk.
- $84K–$85K is a critical support zone for bullish momentum.
- 200-day SMA and EMA around $85K currently act as resistance.
Investors should remain cautious and closely monitor these key price levels and market dynamics.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
