Bitcoin News Today: Bitcoin and Ether Face Short Squeeze Risk as Record Ether Shorts Accumulate

Bitcoin and Ether are showing signs of a potential short squeeze as speculative traders have amassed record leveraged short positions, particularly in Ether. According to data from CME Group, speculative Ether traders have built the largest-ever leveraged short position in the altcoin, a move that could backfire if prices rebound sharply [1]. This development comes amid a broader cross-crypto sell-off, with over $500 million in long positions liquidated within 24 hours as of the latest data from CoinGlass [1].

Bitcoin, meanwhile, has returned to $116,000 following Monday’s Wall Street open as bulls attempt to trigger a short squeeze by pushing the price upward. The BTC/USD one-hour chart indicates a consolidation pattern around this level, which some traders are watching closely for signs of a breakout [1]. Market sentiment remains bearish, with traders forecasting continued consolidation for Bitcoin between $112,000 and $120,000 in the third quarter, while altcoins may see relative strength [1].

Prominent trader BitBull suggested that Bitcoin could see a "capitulation wick" below $112,000, mirroring a previous pump above $124,000, if the current bearish momentum persists. Similarly, analyst Michaël van de Poppe noted that if Bitcoin fails to break the $116,800 level, a sweep of the lower end of the range could be interpreted as the start of a bear market [1]. Despite these bearish forecasts, exchange order books suggest that a significant portion of traders are positioning for a near-term reversal, particularly in the case of Ether.

BTC/USDT six-hour and one-day charts highlight key levels to watch for potential short liquidation [1]. According to CoinGlass, a critical short liquidation level for BTC/USD is at $116,500 [1]. The build-up of large short positions, particularly in Ether, has raised the possibility of a short squeeze if prices rebound.

The broader macroeconomic environment is also influencing trader behavior. The upcoming U.S. Federal Reserve Jackson Hole symposium is viewed as a key de-risking event, as traders adjust their positions ahead of potential policy hints [1]. Trading firm QCP Capital noted that higher-than-expected producer price index (PPI) numbers complicate the Fed’s policy framework, leading to increased uncertainty ahead of the September meeting [1].

The timing of these developments, including the record Ether short position and the cross-crypto drawdown, suggests a market that is bracing for volatility. With Bitcoin consolidating in a key range and Ether sitting near $4,300, the stage is set for a potentially dramatic shift if price action moves against the current short-heavy positioning.

[1] Source: Cointelegraph – [https://cointelegraph.com/news/bitcoin-ether-eye-short-squeeze-as-traders-build-largest-ever-eth-short](https://cointelegraph.com/news/bitcoin-ether-eye-short-squeeze-as-traders-build-largest-ever-eth-short)