Bitcoin News Today: Bitcoin Whales' $420M Gamble: $120K Liquidation or Support Rebound?

Bitcoin whales have significantly expanded their short positions in recent weeks, with one prominent trader revealing a 3,500 BTC short equivalent to $420 million at current prices, according to data from Cointelegraph Markets Pro and TradingView. The position, with a liquidation price of approximately $120,000, reflects heightened bearish sentiment amid geopolitical tensions and market volatility. This move follows a broader trend of large investors leveraging short positions, including a $1.1 billion short opened by a Satoshi-era whale just before former U.S. President Donald Trump's 100% tariff announcement on Chinese imports Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, …^[4].

On-chain analytics platforms highlight critical support levels to monitor. Short-term holder (STH) cost basis remains a key metric, currently at $113,861 as of October 13, according to Glassnode. STHs-wallets holding Bitcoin for up to six months-historically act as a stabilizing force during bull market corrections. If Bitcoin dips below this level, it could trigger further selling pressure from retail investors, who have cost bases just below $114,000 Bitcoin Whale Sees a Fresh BTC Price Dip With a 3500 BTC Short^[1].

Technical indicators also point to pivotal thresholds. CryptoQuant analysts identified the 30-day, 90-day, and 200-day simple moving averages (SMAs) as critical support zones. While Bitcoin remains above the 200-day SMA ($106,800), it has fallen below the 30- and 90-day SMAs, creating a dynamic resistance zone around $114,000–$116,000. A break below $110,000 could test deeper support at $100,000–$107,000, where the STH cost basis and 200-day SMA converge Bitcoin STH Cost Basis Aligns With Critical Indicator: Support …^[6].

The market has already experienced significant turbulence. Trump's tariff announcement triggered a historic $19 billion liquidation event, wiping out 1.66 million traders and erasing $1 trillion in market value within 24 hours. Bitcoin plummeted from $125,000 to $102,000, while Ethereum dropped 18%. The Satoshi-era whale profited $200 million by timing the crash, raising questions about potential insider knowledge Early Bitcoin Whale Shorted $1.1B Right Before Tariffs, …^[4].

Despite short-term volatility, long-term fundamentals remain intact. Bitcoin continues to trade above its 200-day SMA, and institutional buying has increased, with Marathon Digital Holdings recently purchasing 400 BTC ($45.9 million) during the selloff Bitcoin, XRP, Ethereum Price Move: Cryptos Regain Ground After …^[13]. Analysts like Axel Adler note that while the bull market shows signs of fatigue, key support levels and declining exchange reserves suggest BTC could reclaim momentum in the coming months Bitcoin Holds 4% Above STH Cost Basis As Mature Bull Cycle …^[9].

Market participants are closely watching geopolitical developments. Trump has hinted at reversing tariffs if China adjusts its rare earth export policies, which could spark a short-term recovery. However, the broader trade war risks remain a wildcard, with Morgan Stanley analysts cautioning that Beijing's actions are tactical rather than strategic Bitcoin Whale Sees a Fresh BTC Price Dip With a 3500 BTC Short^[1].