The Hidden Reason Bitcoin Didn’t Recover When Gold and Silver Went Crazy

Bitcoin btc$75,780.00 Price action seemed strangely lethargic early last month, even as traditional assets like precious metals and stocks hit new highs.

The world’s largest cryptocurrency repeatedly failed to break above the $90,000 level, a stagnation that, in retrospect, foreshadowed the recent sharp sell-off to $75,000.

At the time, traders blamed everything from a breakout to safer assets and declining demand for cryptocurrencies, to changes in ETF spot flows and month-end positioning. But some analysts say the real story was visible long before prices plummeted: It was on display in exchange order books.

According to Keith Alan, co-founder of trading analytics firm Material Indicators, order book data showed persistent selling pressure below $90,000 that consistently stifled bullish momentum even as broader market conditions looked favorable.

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He described this behavior as a form of “liquidity herding,” in which large orders shape market behavior by pushing the price toward levels that benefit the dominant participant.

Think of it as a crowded auction where one very large player controls the room. By placing large sell orders where everyone can see them, the purchase appears risky. As buyers hesitate, the price shifts sideways or lowers, allowing the player to silently accumulate at more favorable levels.

This tactic is not based on news or fundamentals. It uses the order book itself to influence behavior and often appears when options expire, when keeping the price within a specific range can reduce losses or improve payouts for large traders.

At the same time, order book data showed a dense group of bids accumulating between approximately $85,000 and $87,500. That zone repeatedly absorbed selling pressure and acted as a short-term floor during bitcoin’s consolidation phase.

“If that support held, it was seen as a potential basis for another push higher,” Alan said at the time. “But once it’s broken, things can change quickly.”

That warning proved prophetic. When bitcoin finally fell below the low end of that bid group, sales accelerated quickly as tight liquidity amplified every move. The breakout marked a decisive failure of the range that had contained prices for weeks.

Bitcoin tested lows near $74,000 to $76,000 over the weekend, highlighting a fragile battle between dip buyers and forced sellers in a thin market.

BTC in “bearadise”

Meanwhile, Alan had previously warned that a monthly close below around $87,500 (the opening level for 2026) would represent a clear technical failure. He referred to that scenario as a step toward “Bearadise,” shorthand for a phase in which bearish momentum feeds on itself as confidence erodes.

Big players influencing short-term price action through liquidity placement is not new to crypto markets.

Whales and high-frequency traders have long used the visible depth of the order book to shape expectations, often trapping smaller traders on the wrong side of the move.

However, in retrospect, the same order book dynamics that kept bitcoin below $90,000 also left it vulnerable once support gave way.