- Bitcoin is using a contemporary wave of momentum, with USDT provide hitting a brand new all-time excessive.
- Will leverage-heavy shorts take management and set off draw back volatility?
The crypto market is teetering on a knife’s edge. The sentiment is holding impartial as bulls and bears battle for management of Bitcoin [BTC] in a high-stakes tug-of-war.
This sort of setup often opens the door for opportunistic merchants to take sides, creating a perfect setup for a contemporary volatility squeeze.
In line with AMBCrypto, how this standoff resolves may form Bitcoin’s subsequent main leg.
Bulls and bears lock horns as Bitcoin holds the road
Bitcoin is closing out Q2 with a decisive rebound from its multi-month low of $98k, proper because the macro concern began to chill off. That transfer just about worn out the bears who have been pricing in extended geopolitical danger.
On the time of writing, Futures market data confirmed that solely 58% of longs have been sitting in a possible squeeze zone, down considerably from over 80% only a week in the past.
Clearly, the market simply went by a significant leverage reset.
Nonetheless, as Bitcoin creeps again towards that $110k goal, shorts are beginning to circle once more. And with value stabilizing within the $106k-$108k vary after the early-week breakout, bears now have a clearly outlined zone to defend.
Supply: TradingView (BTC/USDT)
Nothing captures this higher than James Wynn, a dealer who’s made headlines this cycle for repeatedly taking high-leverage BTC positions that always finish in liquidation.
He’s again at it, this time with a 40x quick price $1.49 million, sitting dangerously near a liquidation stage of $108,630. It’s an aggressive bet that locations him proper on the fringe of present value motion.
Whether or not Wynn is seeing one thing the broader market isn’t or just repeating outdated errors, his place may develop into the set off for Bitcoin’s subsequent volatility spike.
The $110k query: Breakout or rejection?
In contrast to the swift early-June rebound the place Bitcoin rallied practically 10% off the $100,424 weekly low and reclaimed $110k in simply 4 bullish candles, this present value motion seems to be extra measured.
The shift in tempo aligns with a key macro sign: Tether’s [USDT] circulating provide simply printed a contemporary all-time excessive at $158 billion, pointing to rising stablecoin liquidity flowing into the system.
Supply: Glassnode
On this context, Bitcoin’s extra gradual climb may mirror sensible cash accumulation somewhat than speculative chasing, particularly with BlackRock reportedly including $1.15 billion in BTC weekly.
This paints its present consolidation as a possible launchpad for a extra calculated $110k retest heading into early Q3.
If upward stress persists, Wynn’s 40x quick and the 64% short skew on Binance derivatives may develop into structural gasoline for a brief squeeze, positioning BTC for a contemporary all-time excessive.