Bitcoin analysis attributed the rapid pullback of BTC prices by over $4,000 within hours to 'deception.'
Bitcoin prices fell 4% on January 7, as the 'predictable' BTC price movements brought whales into focus. Bitcoin 'deception' led to price support crumbling.
Data from Cointelegraph Markets Pro followed BTC/USD breaking below $98,000.
This action was taken in light of the macro reflection of the U.S. Job Openings and Labor Turnover Survey (JOLTS) data, which showed a surge in hiring boosting the labor market.
“The market catalyzed lower as JOLTS rose, but if initial jobless claims do not rise, JOLTS means one thing - job creation,” popular trader and YouTube channel host Matt Cowart responded in a post on X.
“Happy to let the market fall today and then back to long tomorrow.”
Due to the recent disappearance of support levels, Bitcoin fully reversed the rapid gains from the previous day, at the mercy of large traders.
In response, Keith Alan, co-founder of trading resource Material Indicators, referred to this practice as 'deception' - entities with significant capital deliberately shifting liquidity on the order book.
“Deception is frustrating, but it often facilitates some predictable price movements for Bitcoin,” he summarized.
Deception can significantly affect price movements in a short time, with Bitcoin fluctuating as liquidity appears and disappears above or below the price.
Alan uploaded a chart of the BTC/USDT currency pair on Binance, highlighting the removal of several recent liquidity blocks.
Continuing, popular trader Skew noted that due to the pullback, late BTC long positions have been 'wiped out.'
Data from monitoring resource CoinGlass confirmed that over $30 million in long positions were liquidated in a single hour that day.
“The retest is ongoing and may be quite unstable,” trader and analyst Rekt Capital added in his latest market analysis.
“A daily close above $101,165 (black) is needed to confirm the success of the retest.”
Bearish BTC price predictions return
Earlier, Cointelegraph reported on traders' expectations for BTC prices, while the $100,000 threshold remains unchanged.
Then, some focused on the bearish head and shoulders pattern on the daily chart possibly failing, with the current $108,000 all-time high being the peak.
According to popular trader Cheds Trading, the latest pullback now puts that theory at risk.
“$BTC is currently struggling every day to recover to the broken LH/right shoulder invalid zone,” he warned.
In a subsequent comment on X, Cheds Trading added that he thinks this price movement is 'completely normal.'
Meanwhile, trader, analyst, and podcast host Scott Melker, known as the 'Wolf of All Streets,' pointed out the 50-day simple moving average (SMA), which Cointelegraph previously reported as an important support level.
“Testing support now, but losing this, $BTC may test those $92,000 lows,” trader Justin Bennett warned as part of his own market analysis.
