Bitcoin News Today: Speculative Shorts Face Squeeze as Bitcoin Stabilizes Near $115K

Bitcoin’s price recently pulled back from record highs, triggering significant short liquidation risk and drawing attention from analysts and traders. The cryptocurrency has slipped 8% from its peak above $124,500, with on-chain metrics such as the MVRV Z-Score indicating that the bull cycle may still have room to run despite short-term volatility [2]. However, speculative positions have accumulated risk, particularly on the BTC/USD pair, where a key short liquidation level is seen at $116,500 [3]. Over the past 24 hours, Bitcoin long positions were liquidated for $125 million, while short positions were liquidated for $6.5305 million [4].

The total value of short positions at risk in the market currently exceeds $2.2 billion, according to recent analysis. This figure includes leveraged short positions on both Bitcoin and Ethereum, with Ethereum short positions reaching record levels as traders increasingly bet against the second-largest cryptocurrency [3]. On-chain data from Cointelegraph Markets Pro and TradingView shows that BTC/USD managed to stem losses overnight, stabilizing near $115,000 after a brief retreat earlier in the week. Meanwhile, Ethereum is at a critical juncture, as its price nears key support levels that could trigger further liquidation cascades [6].

Traders and analysts remain cautiously optimistic, though some have warned that consolidation is likely in the coming months. Prominent trader BitBull noted that Bitcoin may continue to trade within a $112K-$120K range in the third quarter, while altcoins may see more upward movement [3]. Similarly, analyst Michaël van de Poppe suggested that a break below $116.8K could trigger a bearish sweep, potentially marking the beginning of a broader market downturn [3]. However, others believe that the recent price action could lead to a short squeeze, particularly as speculative short positions build to historically high levels.

The coming week could bring additional clarity, particularly with the US Federal Reserve’s Jackson Hole symposium approaching. The event is expected to provide insight into the central bank’s policy framework, especially after higher-than-expected producer price index (PPI) data complicated expectations for rate cuts. Traders are closely watching for signals that could influence the trajectory of Bitcoin and broader financial markets [3]. Additionally, the recent price correction has sparked speculation that large institutional investors may be scooping up Bitcoin at discounted prices, as suggested by analyst CrypNuevo, who argued that a large-scale liquidation was engineered to flush out retail traders [6].

While short-term volatility remains high, the overall market environment suggests that Bitcoin could stabilize above $115,000, especially if bullish fundamentals continue to hold. On-chain data and trader sentiment indicate that the market is bracing for further consolidation, with potential for renewed upward momentum once leveraged positions reset and selling pressure subsides. Investors are advised to closely monitor key technical levels and macroeconomic developments, as the next few weeks may determine whether the current pullback is a minor correction or a more significant bearish shift.

Source: [1] Bitcoin - MVRV Z-Score | Series (https://en.macromicro.me/series/8365/bitcoin-mvrv-zscore)

[2] Bitcoin Price Forecast: Is a 20% Correction Looming After 2021-style Top (https://www.fxempire.com/forecasts/article/bitcoin-price-forecast-is-a-20-correction-looming-after-2021-style-top-1542035)

[3] Bitcoin, Ether set for squeeze as traders go record short (https://cointelegraph.com/news/bitcoin-ether-eye-short-squeeze-as-traders-build-largest-ever-eth-short)

[4] Data: In the past 24 hours, the total liquidation across (https://www.chaincatcher.com/en/article/2198399)

[5] Bitcoin – Number of Addresses Holding 1k+ BTC (https://en.macromicro.me/charts/29043/bitcoin-addresses-with-balance-more-than-or-equal-to-1k)

[6] $500M Liquidations Rock Ethereum and Bitcoin (https://bitcoinist.com/500m-liquidations-rock-ethereum-and-bitcoin-crash/)