Bitcoin faced renewed downward pressure on Wednesday as the Wall Street session opened with heavy selling.
The leading cryptocurrency slipped below $113,000, extending losses from earlier in the week and threatening a move toward fresh local lows.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was unable to maintain stability after a brief reclaim of the $113,000 mark.
Bid liquidity continued to thin across major exchanges.
Traders Point to Key Price Zones
According to data provider CoinGlass, $112,300 emerged as an immediate zone of interest.
Popular trader Daan Crypto Trades said Bitcoin has been testing liquidity across both sides of the range for the past six weeks.
“$BTC took out a bunch of liquidity on both sides for the past 6 weeks, as it ranged around this same price region,” he explained.
He pointed to $120,000 as the largest nearby liquidity cluster and identified $112,000 as the key support level to watch.
“These areas often act as local reversal zones and/or magnets when price gets close to them,” he added.
“Spoofy the Whale” Returns
Other analysts flagged potential manipulation in the order book.
Keith Alan, co-founder of Material Indicators, said recent movements suggest that large players may be using artificial bids to push prices lower.
Alan referred to the return of figures he dubbed “Spoofy the Whale” and the “Notorious B.I.D.” — entities known for shifting liquidity to influence market direction.
“Too soon to make any assumptions, but the influence on price direction will be the same,” he said.
“Bids moving lower invites price to move lower.”
Altcoins at Risk
Beyond Bitcoin, analysts warned of ripple effects across the altcoin market.
TheKingfisher, a well-followed commentator, said a prolonged slide in BTC could trigger disproportionate losses for smaller tokens.
“Still, we could see a gradual bleed, cascading block by block. While majors remain stable, a 5% BTC move could trigger 10–30% drops in alts,” he said.
Historical Parallels Offer Hope
Some traders see reasons for optimism despite the current decline.
Analyst Rekt Capital compared the latest correction to similar moments in prior bull cycles.
“One of the most positive things about this current pullback is that this same type of retrace took place at this same moment in the cycle in both 2017 and 2021,” he noted.
“In both 2017 and 2021, each of those retraces preceded upside to new All Time Highs.”
Focus Turns to Fed
The downturn also coincides with a key week for macroeconomic signals.
Minutes from the Federal Reserve’s July policy meeting were due to be released, and traders were awaiting Jerome Powell’s speech at Jackson Hole later in the week.
Last year, Powell used the symposium to signal policy shifts, and markets are closely watching for confirmation that interest rate cuts could be on the horizon.
With Bitcoin testing support zones and macro pressures looming, the next few days could prove decisive for market sentiment.
