Key Takeaways
Why is BTC under pressure this week?
The market has not yet recovered from last week’s liquidation, BTC failed to hold $115,000 mid-week, and $600 million in new shorts suggests smart money is pricing in even more downside.
How does the trade war between the US and China play a role?
Trump’s confirmation of ongoing trade tensions adds additional macro volatility, making BTC’s $110,000 support increasingly vulnerable.
The market has not yet recovered from the recent liquidation cascade, and it appears another one is lining up. For context: it It’s been a week since the $19 billion dropped, and the market is still struggling to find it a grab.
To support this, FOMO has not yet started. Discover the demand for Bitcoin [BTC] remains low and fear continues to dominate sentiment. At this point, it is premature to call $110,000 solid support for BTC.
Against this backdrop, Donald Trump’s comments on the trade war have only reinforced the downside. Does this mean BTC is in line for another wipeout? Early signs indicate that the smart money has already priced this in.
Trump confirms that pressure on the trade war will continue
“We’re in it now,” Trump doubled down on the US-China trade war.
In a recent one panelWhen asked whether the market should price in a “sustainable” trade war with China, Trump did not hold back. He made clear that the macroeconomy is far from priced out and that tariffs remain the main line of defense.
In short, the 100% tariffs are not off the table yet and the execution will still hit China from November 1. Market reaction? BTC rose 0.68% intraday at the time of writing, showing short-term improvement but no real follow-through yet.
Source: TradingView (BTC/USDT)
In other words, Bitcoin is still a long way from establishing $110,000 as a solid base.
Zoom in: BTC is down 3.23% this week. It failed to cross $115,000 into support midweek, ending the week with a range break. The sell-off pushed BTC back to $110,000, showing a clear sign bearish bias in the band.
Simply put, BTC’s structure is being tested.
However, the $600 million in short positions indicates that the market is expecting further downside, a trend that has recently generated significant profits for traders.
$600 Million BTC Shorts Raises Market Suspicion
Timing appears to be an important market trigger in this cycle.
Flashback a week ago, before the $19 billion blowout, AMBCrypto saw a $420 million BTC shortage around $121,000, making this the biggest bet in months. That trade raised huge sums, fueling speculation about insider trading.
Now we see a similar arrangement. A whale was $600 million short on multiple assets, with $194 million on BTC with 10x leverage. The kicker? It went live 90 minutes before Trump dropped the trade war news.
Source:
The timing screams that this move was not random.
Instead, with the US-China trade war intensifying, dip buyers nowhere to be seen and BTC’s $110,000 under pressure, this $600 million short position appears to be a strategic hit for Bitcoin. Will it pay off? History says this is likely to be the case.
In this context, a new leverage flush is not off the table.
According to CryptoQuantCapital is still heavily leveraged, and with most positions taken by bearish traders, Bitcoin’s $110,000 support level is starting to look increasingly vulnerable.