Bitcoin (BTC) is trading at $82,645, down over 1% in the last 24 hours, but traders are closely watching a potential short squeeze. A $521 million short position on the decentralized exchange Hyperliquid is now a target, with traders attempting to trigger a forced liquidation.
If successful, this could push BTC’s price higher as the whale behind the short is forced to buy back BTC at a loss.
Whale’s Short Position at Risk of Liquidation
A crypto whale has opened a 40x leveraged short position worth $521 million, betting on BTC’s decline. However, traders led by the pseudonymous Cbb0fe are attempting to trigger a liquidation by driving BTC’s price higher.
If BTC rises just 1.75% to $85,591, the short position will be liquidated. This would force the whale to buy back BTC at a higher price, potentially fueling a rapid surge.
This battle between short sellers and traders trying to trigger the squeeze is intensifying market volatility. If the liquidation occurs, the influx of forced buying could push BTC toward new resistance levels, while failure to break higher could embolden bears.
Key takeaways:
- A $521 million short position is at risk of liquidation.
- Traders need BTC to rise 1.75% to $85,591 to trigger the squeeze.
- A liquidation could create massive buying pressure and fuel a price rally.
Bitcoin Faces Uncertainty as Fed Decision Looms
Beyond the battle over the short position, macroeconomic factors are also weighing on BTC’s trajectory. Traders are awaiting signals from the Federal Reserve, with speculation around multiple rate cuts later in 2025.
- According to the CME FedWatch Tool, there is only a 1% chance of a rate cut in the upcoming meeting.
- BTC ETPs saw $1.7 billion in outflows last week, continuing a streak of negative flows that have eroded BTC’s year-to-date gains.
With low trading volume and cautious sentiment, BTC remains range-bound for now.
Bitcoin Drops Below Key Support as Triangle Breakout Signals Further Downside
BTC has broken below a critical symmetrical triangle on the 2-hour chart, signaling increased selling pressure. BTC has slipped below $82,000, now trading near $81,500, with the breakdown opening the door to further declines.
The 50-period EMA at $83,200 acted as strong resistance before the drop, reinforcing the bearish outlook. If BTC fails to reclaim $82,500, the next key supports lie at $80,000 and $78,300. A failure to hold these levels could see BTC retreat further to $76,500.
For a bullish reversal, BTC must break above $85,000. Until then, the market remains at risk of further downside, with traders closely monitoring volume and key price levels.
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