Bitcoin Breaking News: Huge Short Position as a Potential Trap for Traders - The Bitcoin News

Image by KIA large whale has opened a $440 million short position (with 40x leverage) on Bitcoin. His entry price was reportedly around $84,000, with a liquidation price of approximately $86,000. If this liquidation were to actually take effect, it could spontaneously trigger a buy order worth billions. Such an event has often triggered sharp price fluctuations in the past.

Prices are currently fluctuating between technical levels, attempting to break out of a sideways zone. A rising triangle is being discussed on the four-hour chart, which is also seen as a bearish pattern (rising wedge) in the short term. Chart analysts now see it as crucial whether support holds or whether a decline is imminent. The one-hour charts show occasional retests near the CME futures gaps that formed at the beginning of the week. Many expect these price gaps to fill at some point, which experience shows is often the case.

General market situation tense

While Bitcoin is currently still in a kind of stalemate, other factors are becoming increasingly important. Some expect a recovery soon because several signs point to an expansion of the money supply. If the supply of liquid assets increases, the risk-reward profile for cryptocurrencies could become more favorable. New large market participants are apparently getting ready, which could provide fresh tailwind.

At the same time, altcoin fans have been watching Ethereum and other major coins remain subdued for days. Various reports of large sales and instability have recently caused caution. Nevertheless, many projects have been tweaking their concepts and hoping for the next upswing when Bitcoin regains its momentum. This could potentially attract investors who are currently waiting.

FOMC Outlook and Rising Stablecoin Balances

The next FOMC meeting is coming soon. According to experts, rate cuts are unlikely this time, but any announcement from the Fed could trigger movement in all markets. Some are already speculating that there will be several interest rate cuts this year as soon as economic data indicates a deterioration. Meanwhile, the number of stablecoins continues to grow. Some chart comparisons point to declining demand for cash and rising demand for crypto-based assets.

Rising stablecoin holdings are seen as an additional indicator that buyers are still waiting in the wings. If Bitcoin begins a new rally, this capital buffer flows into BTC or altcoins. In this situation, the whale is betting that a collapse is more likely than a rally. Many retail investors, on the other hand, hope that the short position will fail and trigger the long-awaited price jump.