On December 29, Bitcoin (BTC) surged to a test level of $90,000 but soon retreated to around $87,700. According to analyst NoLimit, this was not an organic market move but an artificially initiated operation. The expert links the incident to major trading platforms and market makers who, he says, may have exploited the spike for profit.
Bitcoin Movement on December 29
Observations show BTC briefly reached $90,000 before quickly falling back to about $87,700. Analyst NoLimit described this behavior as artificial, calling such spikes the result of planned actions by market participants. For a more detailed breakdown of the price dynamics, see the price movement analysis, which examines the stages around the $90,000 level.
Mechanics of the Liquidation Trap
NoLimit believes this was a classic liquidity grab operation aimed against traders betting on a decline. He notes a high concentration of short positions in the zone, with funding rates turning negative and open interest rising significantly, creating vulnerability to a sharp move. The analyst also pointed to Binance, Coinbase, and market maker Wintermute as likely initiators, explaining that these entities could have aggressively pushed the price up amid low liquidity conditions.
Position Unloading and Price Crash
According to NoLimit’s observations, while retail investors reacted to the "green candles" by entering long positions, the organizers began taking profits. Transaction data he references shows large asset transfers to exchanges immediately after the price spike, signaling unloading. Following the liquidation wave, real price support vanished, and the price fell as quickly as it rose; this process aligns with the mass liquidation theme discussed in previous reviews.
Coordinated Player Maneuver
The analyst describes the event as a "coordinated maneuver by players" who simultaneously control liquidity and order execution. According to his version, such coordination allows initiators to first trigger stop orders and liquidate short positions, then profitably close their volumes. As a result, a brief spike turns into a moment of rapid profit-taking by large participants.
Why It Matters
For miners, these events are important primarily due to sudden price volatility—short-term spikes and subsequent drops affect fiat-equivalent income when converting revenue. While mining operations and BTC rewards remain unchanged, market dynamics can influence the timing and price of selling mined coins. It’s also worth noting that large transfers and liquidation waves can temporarily reduce exchange liquidity, impacting spreads and order execution.
What to Do?
Below are practical steps to help reduce risk during such short-term spikes and drops.
- Plan BTC sales in advance and use limit orders to avoid selling at momentary spikes.
- Don’t succumb to emotions during sharp "green candles"—retail investor influxes often coincide with large players taking profits.
- Diversify withdrawal strategies: spread sales across different exchanges and times to mitigate local liquidity impact.
- Monitor large on-chain transfers and exchange volumes—sudden big deposits may precede position unloading.
- Assess the risk of holding BTC before converting to fiat and factor in potential downturns when budgeting for electricity and equipment maintenance.