Close Menu
    Bitcoin

    BTC Price Volatility Risks Short Positions as It Approaches $90,000

    Ethan CarterBy No Comments4 Mins Read
    BTC Price Volatility Risks Short Positions as It Approaches $90,000

    Bitcoin (BTC) surged back to $90,000 following Wall Street’s opening on Wednesday, as traders targeted vulnerable short positions.

    Key points:

    • Bitcoin rebounded from previous losses, making a new attempt at the $90,000 milestone.

    • Short-term BTC price dynamics continue to be driven by liquidity, with shorts facing pressure this time.

    • Bearish forecasts suggest a potential “breakdown” below the 100-week moving average cloud.

    Liquidity-driven Bitcoin pressures late shorts

    Data from Cointelegraph Markets Pro and TradingView indicated volatile BTC price movements, resulting in 2.5% gains for the day before a pullback.

    019b2d02 a0f8 72a3 bc2d 4f790c6969c3
    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    The momentum mirrored Tuesday’s US market open, where a “battle” ensued between buyers and sellers. Once again, liquidity on both sides of the price faced scrutiny.

    “A significant upward move on $BTC, and numerous shorts are poised to be liquidated,” remarked crypto trader, analyst, and entrepreneur Michaël van de Poppe on X, describing the price action as “positive.”

    “The $88K breakout is vital; I believe we’ll likely move toward $93-94K.”

    019b2cfc 2cce 795b a7f9 782660a8095f
    BTC/USDT four-hour chart featuring RSI and volume data. Source: Michaël van de Poppe/X

    Commentator Exitpump similarly highlighted a “robust” start to the US trading session, observing shorts getting “squeezed” above $88,000.

    The latest information from monitoring platform CoinGlass indicated crypto short liquidations exceeding $120 million over the past four hours.

    019b2cff 9416 7cbd bdd7 085c4c258736
    Total crypto liquidations (screenshot). Source: CoinGlass

    “$BTC is essentially back to its level from about six months ago. Liquidity was extracted both on the ascent and the descent,” trader Daan Crypto Trades summarized regarding longer timeframes.

    “The most significant liquidity cluster nearby lies at $95K. Overall, it’s relatively sparse given the circumstances.”

    019b2cfd 1cfe 79dd 89de 29915c246538
    BTC liquidation heatmap. Source: Daan Crypto Trades/X

    BTC price “breakdown” still anticipated

    For Caleb Franzen, the founder of trading tool Cubic Analytics, Bitcoin’s 100-week simple (SMA) and exponential (EMA) moving averages are critical.

    Related: Bitcoin institutional purchases outstrip new supply for the first time in six weeks

    As previously reported by Cointelegraph, these levels, currently just below $85,000, have been identified as a vital last-resort support level.

    “Bitcoin is on the brink of dipping below its 100-week moving average cloud,” Franzen cautioned on Tuesday.

    Franzen joined those predicting a BTC price breakdown, suggesting it could happen “soon,” but also see it as an opportunity to purchase the dip using dollar cost averaging (DCA).

    019b2cfd b841 7ee2 b7cf 05e8a8214f1d
    BTC/USD three-day chart with 100-week SMA and EMA. Source: Cointelegraph/TradingView

    Others expect further macro lows on the horizon, with $76,000 mentioned by trader Roman as “approaching soon.”

    This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should carry out their own research before proceeding. While we aim to deliver accurate and timely information, Cointelegraph does not guarantee the precision, completeness, or dependability of any content in this article. This document may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage resulting from your reliance on this information.