Bitcoin suffered a dramatic setback this Monday, falling below $87,000 in a move that many market participants have labeled as artificial. The Wall Street open brought with it a wave of aggressive selling that triggered Bitcoin liquidations worth 200 million dollars in just sixty minutes. According to analyst reports on social media, major players like Wintermute and Binance were pointed out as the main architects of this sudden supply dump.
The leading asset’s price retreated to touch a low of $86,625, marking a clear distribution phase just as traditional markets began their day. The speed of the drop surprised leveraged traders, wiping out over 100 million dollars in long positions in a span of five minutes. The analysis account DeFiTracer did not hesitate to label the event as “pure manipulation,” highlighting the apparent coordination behind this concentrated bearish move.
Parallel to this short-term price chaos, the firm Strategy continued demonstrating its unwavering commitment to the digital asset through new acquisitions. The company revealed to the SEC an additional purchase of 10,645 BTC, made at an average price of $92,098 per coin. This action highlights a notable divergence between manipulated spot market volatility and strategic institutional accumulation that continues operating with a long-term vision.
The Liquidity Hunt and Current Market Mechanics
Technical analysts like Daan Crypto Trades have interpreted this price action as a classic “liquidity hunt” designed to sweep retail investor stops. This type of volatility is often characterized by the infamous “Bart” moves, where price rises or falls vertically only to return to the starting point. Thus, the lack of sustained organic selling volume suggests these moves are tactical and not necessarily indicative of a deep fundamental trend change.
Bearish sentiment quickly took hold of commentators, with traders like Roman predicting that any bounce towards $84,000 would simply be an opportunity to sell. The short-term market structure favors bears, who seem determined to test lower support levels, possibly around $76,000. Likewise, large algorithmic trading companies appear to be exacerbating these moves to maximize their profits at the expense of general uncertainty.
Despite the carnage in the order books, some experts remain calm and see this event as a necessary cleansing within a broader consolidation range. AlejandroBTC pointed out to his followers that the break of the early December range was predictable and necessary to sweep local lows. The expectation of testing the 100,000 to 105,000 dollar zone remains valid for those who interpret this volatility as temporary noise before the definitive bullish resolution.
Is This the Last Shakeout Before a New All-Time High?
The disconnect between spot price and on-chain fundamentals remains a topic of intense debate among professional sector analysts. Funding rates in futures markets have begun to reverse, which historically has signaled the formation of a solid market floor. However, caution remains the norm while traders await clear confirmation that selling pressure has concluded.
Looking to the immediate future, investors will need to watch closely if the current support level manages to contain the bleeding caused by these massive sales. The market’s ability to absorb this institutional supply will be determinant in defining if Bitcoin can recover the bullish path before year-end. Finally, patience will be key while the smoke from this alleged market manipulation dissipates.
