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Whipsaw BTC Price Action Puts Shorts on the Chopping Block at $90,000

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Japan’s Metaplanet Acquires 2,205 More Bitcoin, Total Holdings Reach 15,555
Japan’s Metaplanet Acquires 2,205 More Bitcoin, Total Holdings Reach 15,555

Bitcoin (BTC) returned to $90,000 after Wednesday’s Wall Street open as traders eyed vulnerable short positions.

Key points:

  • Bitcoin erases recent losses with a fresh trip to the $90,000 mark.

  • The short-term BTC market is still driven by the liquidity game, but shorts are now being punished.

  • Bearish price predictions include a “breakdown” below the 100-week moving average cloud.

Liquidity-hungry Bitcoin grills late shorts

Data from Cointelegraph Markets Pro and TradingView showed erratic BTC price action sparking 2.5% daily gains before a reversal.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

The momentum copied Tuesday’s US open, which saw a “battle” unfold between buyers and sellers. The liquidity of both the buyers and sellers was at stake then, just as it is now.

“A great move upwards on $BTC and there are a lot of shorts ready to be taken out,” crypto trader, analyst and entrepreneur Michaël van de Poppe reacted on X, calling price action “great.” 

“The $88K breakout is crucial, I think that it’s very likely that we’ll start moving all the way to $93-94K.”

BTC/USDT four-hour chart with RSI, volume data. Source: Michaël van de Poppe/X

Commentator Exitpump likewise praised a “strong” start to the US session, eyeing shorts getting “squeezed” above $88,000.

The latest data from monitoring resource CoinGlass showed crypto short liquidations over the four hours to the time of writing passing $120 million.

Total liquidations of crypto (screenshot). Source: CoinGlass

“$BTC Pretty much back to where it traded about 6 months ago. Liquidity taken on the way up and on the way down,” trader Daan Crypto Trades summarized about longer timeframes. 

“The biggest liquidity cluster in relatively close proximity sits at $95K. But all in all it’s pretty empty all things considered.”

BTC liquidation heatmap. Source: Daan Crypto Trades/X

BTC price “breakdown” still expected

For Caleb Franzen, creator of trading resource Cubic Analytics, Bitcoin’s 100-week simple (SMA) and exponential (EMA) moving averages were key.

Related: Bitcoin institutional buys flip new supply for the first time in 6 weeks

As Cointelegraph reported, these levels, now both just below $85,000, were already on the radar as a form of last-ditch support level.

“Bitcoin is on the verge of breaking below its 100-week moving average cloud, Franzen warned Tuesday.

Franzen thus joined those expecting a BTC price breakdown, saying that this should occur “soon” but that it would also provide an opportunity to buy the dip using dollar cost averaging (DCA).

BTC/USD three-day chart with 100-week SMA, EMA. Source: Cointelegraph/TradingView

Others continued to see new macro lows on the horizon, including $76,000, which trader Roman described as “coming in the near future.”

This article does not contain investment advice or recommendations. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions. Cointelegraph, while striving to give accurate information as quickly as possible, does not warrant the accuracy, reliability, or completeness of this information. The information in this article is subject to uncertainties and risks. Cointelegraph shall not be responsible for loss or damages arising out of your reliance upon this information.