Market Liquidity Manipulation Sparks Fears of “Rug Pull” While Dollar Strengthens
Bitcoin (BTC) dropped below the critical $105,000 level on June 17, stoking concerns of a deeper correction as analysts point to order book manipulation and a potential “rug pull” at $104,000. While bulls attempt to defend key price support, market volatility and macroeconomic shifts suggest that a larger move may be imminent.
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD dipped to intraday lows of $104,401 during early Wall Street trading hours, marking a sharp reversal in momentum after testing resistance above $108,000 earlier in the week.
BTC Order Book Shows Signs of Spoofing as Bears Test Bulls
Market observers flagged liquidity spoofing—a tactic in which traders place large, non-genuine orders to influence market sentiment—as a major factor in the latest price action.
“This is what manipulation looks like in the $BTC order book,” said trading analytics firm Material Indicators on X.
“If price breaks below $105k, be prepared for a rug pull at $104k.”
This is what manipulation looks like in the $BTC order book. If price breaks below $105k, be prepared for a rug pull at $104k. pic.twitter.com/URCCSJ3ngU
— Material Indicators (@MI_Algos) June 17, 2025
Material Indicators pointed to shifting bid liquidity zones as evidence of coordinated efforts to drive the price lower. Spoofing is a well-known tactic in crypto markets and can exaggerate short-term volatility by baiting retail traders into panic trades.
Despite this, Material Indicators also suggested that bulls could regain control if they manage to push BTC above $108,000, potentially opening the door for a retest of the $110,000 level.
Trader Sentiment: Calm Before the Storm?
Popular trader Skew shared a more optimistic take, noting that Bitcoin holders have shown greater discipline during recent pullbacks compared to previous market dips.
“For a 3% or so pullback so far, the market isn’t panicked yet,” Skew posted.
“There’s a hedge bias on lower timeframes, but no signs of aggressive shorting or capitulation yet.”
Skew emphasized that volatility remains a threat, suggesting the “big move” is still brewing, especially as macroeconomic and geopolitical developments remain fluid.
Bitcoin has now printed 11 consecutive red hourly candles, an uncommon technical occurrence that highlights the current lack of buying pressure.
Macro Factors: Gold, Oil, and the U.S. Dollar
Outside of crypto, traditional markets are also reacting to global headlines. Gold, often viewed as a safe-haven asset, has softened despite heightened tensions between Israel and Iran, indicating a more measured reaction from institutional investors.
“We are not on the brink of World War 3,” concluded market newsletter The Kobeissi Letter.
“Oil prices are up ~2% today, and the 10-year U.S. Treasury yield is nearing 4.50%. Markets say this won’t be a long-term headwind.”
U.S. Dollar Index (DXY) Shows Signs of a Rebound
The U.S. dollar index (DXY), which often trades inversely to Bitcoin, is showing early signs of a recovery after sliding to multi-year lows. A potential rebound could place additional pressure on BTC, particularly if dollar strength accelerates.
“Asset managers are heavily short on the USD,” noted strategist Guilherme Tavares.
“The last time positioning was this bearish, the DXY staged a notable rally. The RSI is deeply oversold and pointing to bullish divergence.”
Should the DXY reverse, capital may rotate out of risk assets like Bitcoin and equities, reinforcing bearish pressure across crypto markets.
Can Bulls Hold the Line at $104K?
With Bitcoin now trading near a key psychological and technical support zone, traders are watching $104,000 as a line in the sand. A decisive break below this level could trigger a cascade of liquidations, especially in the derivatives markets.
CoinGlass data suggests that a significant volume of long positions are clustered around the $103K–$104K range, raising the risk of further downside if support fails to hold.
While on-chain metrics still show accumulation among long-term holders, short-term sentiment remains fragile as speculative activity cools.
Conclusion
Bitcoin’s drop below $105,000 has reignited bearish fears, with analysts warning of a potential “rug pull” scenario targeting $104,000. With liquidity spoofing back on the radar and the U.S. dollar showing strength, bulls may face increasing difficulty in defending key support.
However, traders remain cautious, not panicked, as the market awaits the next high-volatility event. If BTC can reclaim $108,000, the broader trend may remain intact — but for now, all eyes are on $104K as a potential inflection point in Bitcoin’s short-term price action.
