Bitcoin’s recent price action has been constrained by large-volume traders, with analysis indicating that one or more whales are preventing the cryptocurrency from surpassing $87,500.

Bitcoin Faces Resistance Amid Whale Activity

Bitcoin (BTC) has maintained support above $80,000 for over a week, reaching a two-week high of $87,500 on 20 March. However, market observers suggest that BTC/USD could have climbed even higher if not for strategic moves by large trading entities.

According to Material Indicators, a trading resource monitoring exchange order books, whale traders on Binance have been using a technique known as “spoofing” to manipulate price movement. This strategy involves placing large blocks of sell orders above the current price, effectively capping Bitcoin’s upward momentum.

‘Spoofy the Whale’ Blamed for Market Manipulation

Material Indicators highlighted the presence of a significant sell wall at $89,000, which has prevented Bitcoin from breaking through resistance levels. This activity, attributed to a whale dubbed “Spoofy,” appears to be suppressing price movements.

“If you are wondering why Bitcoin price hasn’t been able to rally past $87.5K yet, the reason is price suppression from Spoofy the Whale,” the firm stated in a post on X.

A detailed market chart provided by the analysts shows that aside from whale transactions, other investor categories have been distributing holdings. This suggests that without whale intervention, Bitcoin’s price could have experienced greater volatility and a potential breakout.

Despite maintaining its current range, some analysts question whether Bitcoin’s recent low of $76,000 can serve as a solid market floor.

Bulls Aim to Defend Key Support Levels

Traders are now focusing on the crucial $84,000–$85,000 range, which could determine Bitcoin’s near-term trajectory.

According to market analyst Daan Crypto Trades, maintaining this support zone is essential for bullish momentum. “The bulls would want to hold on to the $84K-$85K region to keep the momentum. Otherwise, you’re at risk of visiting those lower liquidity clusters which then can end up in a full retrace as price is still choppy,” he explained in a post on X.

He further noted that Bitcoin’s local market structure is attempting to shift towards a small uptrend. However, continued bullish intervention is required to prevent a short-lived rally followed by a quick decline.

Key Moving Averages in Focus

In addition to price action, traders are closely monitoring two critical technical indicators—the 200-day simple moving average (SMA) and the exponential moving average (EMA).

Currently, Bitcoin bulls are working to flip these trendlines into support at around $85,000. A successful move above these levels could strengthen the case for further gains, while failure to hold could see Bitcoin revisit lower support zones.

As Bitcoin remains within its current trading range, market participants will be watching for any shifts in whale behaviour, which could either prolong the price suppression or allow for a breakout beyond the $87,500 resistance.