Bitcoin Spoofing Activity Caps Price at $97K Amid Record Profit-Taking

Bitcoin Price Momentum Faces Challenges

Bitcoin's (BTC) price momentum is currently confronted with significant challenges as manipulative trading strategies and extensive profit-taking actions have kept the cryptocurrency from breaching the $100,000 mark. The BTC/USD pair hovered around the $97,000 level, struggling against intense selling pressure as traders aimed to maintain market control.

Spoofing and Market Manipulation

Recent data from Cointelegraph Markets Pro and TradingView suggests that Bitcoin's critical support level has moved to $97,300. Prominent market analyst Skew has pointed out the existence of substantial bid liquidity around $95,000, while new "ask walls" have emerged between $99,000 and $99,500. These developments indicate ongoing "spoofing" activities designed to manipulate the price lower.

"Ask liquidity moving lower with price likely indicates that it was removed already," Skew elaborated, emphasizing that spoofing during periods of low liquidity compels automated trading bots to sell off their holdings, thereby exacerbating the downward price trend.

Record Profit-Taking Among Holders

Amid these tumultuous market conditions, long-term Bitcoin holders have realized unprecedented levels of profit, totaling $443 million on November 22, as the price of BTC neared its all-time high of $99,800, as reported by CryptoQuant. The unrealized profits also surged to 57%, inching towards the March 2024 peak of 69%. This suggests a potential for price correction in the near future.

Analyst Maartunn has raised concerns regarding these soaring profit levels, suggesting that, "This is approaching the March 2024 peak, indicating an increased probability of a price correction ahead."

Market Predictions and Long-Term Outlook

Despite the short-term resistance faced by Bitcoin, many analysts remain hopeful about its future trajectory. Caleb Franzen, founder of Cubic Analytics, reinforced his bullish outlook with a price target of $175,000 for Bitcoin by 2025.

In his blog post dated November 23, Franzen stated, "The Bitcoin bull market is progressing as expected. BTC must gain an additional +77% to meet my target, but historical patterns suggest we’ve witnessed similar growth since September 2024."

Franzen's optimism is backed by historical comparisons that showcase striking similarities between the current bull market and previous cycles.

Looking Ahead

As the market navigates these complexities, the prevailing sentiment points towards cautious optimism. Traders and analysts alike are keeping a close eye on market movements, especially as Bitcoin inches closer to critical price levels. With robust historical data to support potential outcomes, all eyes remain on Bitcoin's future.