Bitcoin Plunges to New Lows Amidst Order Book Manipulation

Bitcoin (BTC) experienced a significant drop to multimonth lows on February 26, coinciding with the Wall Street open. The price was pressured by what some have described as order book manipulation, causing concerns among investors and traders alike.

Market Situation

The BTC/USD pair hit $85,341 on Bitstamp, marking its lowest level since mid-November. This downward trend was exacerbated by the movement of hundreds of millions of dollars in laundered funds from the recent Bybit hack. Exchange whales also contributed to the bearish sentiment, with allegations of market manipulation surfacing.

• Material Indicators highlighted the abrupt disappearance of bid liquidity from the Binance order book just before the price drop, raising suspicions of foul play.
• Crypto analyst Michaël van de Poppe expressed hope that Bitcoin had reached a critical support level around $85K, suggesting that a further dip might clear out remaining liquidity.

Technical Analysis and Projections

Van de Poppe referenced the relative strength index (RSI), indicating oversold conditions on daily and 4-hour timeframes. Despite the current downturn, he remained cautiously optimistic about a potential rebound in the near future.

• Trader Rekt Capital set a price target of $93,500 as the key level for Bitcoin to reclaim, foreseeing a possible recovery within several weeks.
• Comparisons were drawn to past price behavior post-halving events, hinting at a potential revisit of $93,500 in the coming weeks.

It's important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research and analysis before making any financial decisions.