Bitcoin Price Bounce Sparks Jane Street Debate

February 27, 2026 Amelia Rhodes 0 Comments

Bitcoin Price Bounce pushed BTC back toward the 65000 level ahead of Wednesday’s Wall Street open as speculation grew around possible US institutional selling pressure. Bitcoin climbed roughly 2.5 percent, briefly reaching 66300 on Bitstamp before consolidating. The move helped restore short term confidence after recent weakness, but it also triggered intense debate about what had been suppressing price action in prior months.

Bitcoin Price Bounce Gains Strength Above 65K

Data showed BTC USD rebounding firmly, with daily gains holding above 2 percent at the time of writing. As price recovered, crypto market participants revisited a theory circulating across social media about alleged coordinated selling activity.

The discussion focused on quantitative trading firm Jane Street, which has been named in legal action brought by defunct crypto company Terraform Labs. According to the circulating claim, algorithmic selling of Bitcoin at 10am Eastern Time each day had created consistent downward pressure beginning in October 2025.

Bitcoin Price Bounce debate sparked by viral tweet alleging Jane Street 10am Bitcoin selling algorithm

The tweet reflects how quickly a clear and repeatable narrative can take hold in crypto markets, especially when price action appears to follow a recognizable pattern. Claims of coordinated daily selling provide a simple framework for understanding months of weakness, which can resonate strongly with retail participants who experienced repeated drawdowns. However, viral explanations often compress complex market structure into a single cause, leaving out liquidity mechanics, derivatives positioning, and broader macro factors. The speed at which this narrative spread illustrates how sentiment itself can become a secondary force influencing short term volatility.

Some commentators suggested that if such trading activity had paused amid legal scrutiny, the market may have been free to move higher, contributing to the recent Bitcoin Price Bounce. The theory gained attention quickly, particularly because it attempted to explain repeated intraday weakness at a specific time.

Jane Street Responds to Manipulation Claims

The Terraform Labs complaint refers to alleged market manipulation that impacted crypto markets throughout 2022. That year marked Bitcoin’s last bear market bottom, when BTC fell to 15600 in the fourth quarter before beginning its longer recovery phase.

Jane Street has rejected the accusations. In response to inquiries, the firm described the claims as baseless and opportunistic. The company denied any suggestion that it deliberately manipulated Bitcoin price action.

Despite the online traction, the theory did not convince everyone. Many analysts questioned whether a single firm executing daily algorithmic trades could sustain broad downside momentum in a globally traded asset like Bitcoin. The scale and diversity of market participants make it difficult to attribute prolonged price movements to one repeating event.

Crypto YouTuber Wise Advice was among those skeptical of the 10am selling argument, stating that the explanation was too simplistic to account for the complexity of Bitcoin’s trading structure.

Bitcoin Price Bounce Meets 66000 Resistance

While the rebound improved short term sentiment, traders remained cautious about declaring a larger trend shift. Technical resistance around 66000 remained a major focus.

Market analyst Jelle noted that Bitcoin was facing strong resistance at 66000, both from local range lows and from the four hour trend structure. According to his view, flipping that level into support could trigger short term relief, but until that happens, the prevailing trend remains intact.

This perspective highlights that the Bitcoin Price Bounce, while significant, does not automatically confirm a broader reversal. Price must prove strength by holding reclaimed levels and breaking through overhead resistance with sustained momentum.

Razor Thin Order Books Increase Volatility

Beyond the speculation surrounding Jane Street, liquidity conditions played an important role in the recent volatility.

Keith Alan, cofounder of trading resource Material Indicators, pointed to what he described as a razor thin order book on major exchanges. When liquidity is thin, even moderate buying pressure can move the market sharply. With fewer sell orders sitting above price, upward moves can accelerate quickly.

Alan also noted that overhead sell liquidity had been pulled ahead of US President Donald Trump’s State of the Union address. When large sell orders are removed, resistance weakens, allowing price to move more freely.

This environment likely amplified the Bitcoin Price Bounce. Rather than requiring aggressive buying, the market may have simply reacted to reduced supply on the sell side.

Short Liquidations Add Momentum

Derivatives data reinforced the idea that positioning played a key role in the rebound. Total crypto liquidations reached 333 million over a 24 hour period. Of that amount, 213 million came from short positions.

When short traders are liquidated, their positions are automatically closed through forced buying. This process can rapidly push prices higher, especially in thin liquidity conditions. The large share of short liquidations suggests that bearish traders were caught off guard by the rebound.

As prices moved upward, forced buying from liquidations likely added further momentum to the Bitcoin Price Bounce. This dynamic can create short bursts of strength that feed on themselves, even if the broader trend remains under pressure.

Editor’s View: Why Narrative Often Moves Faster Than Data

In fast moving markets like Bitcoin, price narratives tend to form more quickly than hard evidence. Traders naturally look for a single identifiable cause when volatility spikes, especially after repeated intraday patterns. The idea of a fixed 10am selling window provides a clean explanation in an otherwise complex system, which makes it psychologically appealing. But markets rarely operate on one dimensional triggers, and liquidity conditions combined with positioning imbalances often create moves that later get attributed to a single storyline.

Ongoing Debate Around the Bitcoin Price Bounce

The broader question now is whether the Bitcoin Price Bounce represents a structural shift or simply a volatility driven reaction within an existing downtrend.

On one side, speculation around Jane Street’s alleged 10am selling strategy continues to circulate, especially given the firm’s involvement in legal proceedings linked to Terraform Labs. On the other side, many analysts argue that price action is more logically explained by liquidity conditions, derivatives positioning, and technical resistance levels.

Bitcoin has managed to reclaim levels near 65000 and briefly trade above 66000. However, resistance remains firm and order book depth remains fragile. The recent rebound shows how sensitive the market is to shifts in liquidity and sentiment.

For now, the Bitcoin Price Bounce stands as a reminder that volatility in crypto markets often results from a mix of structural factors and trader positioning, rather than a single narrative explanation. Whether strength continues will depend on how price behaves around key resistance zones and how liquidity evolves in the sessions ahead.

Disclaimer: This content is for informational purposes only and does not constitute financial advice.

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