Bitcoin is currently experiencing a modest rebound following several days of aggressive selling and market fear. The leading cryptocurrency has faced challenges in establishing stable support levels, resulting in significant volatility that complicates trading decisions. In the midst of this uncertainty, a notable market participant, known in the community as BitcoinOG (handle: 1011short), has made a significant return.
The trader garnered attention for generating over $197 million during a recent flash crash. On-chain data indicates that BitcoinOG has deposited $30 million in USDC to the trading platform Hyperliquid and subsequently opened a 10x short position on 700 BTC, valued at approximately $75.5 million. This strategic move has caught the eyes of market participants, rekindling speculation about whether the whale anticipates another decline for Bitcoin. Currently, Bitcoin is attempting to stabilize above the $110,000 mark; however, the large short position reflects persistent bearish sentiment and a general lack of confidence among traders.
BitcoinOG’s current shorts are already showing signs of profitability, as reported by Lookonchain. The trader is sitting on an unrealized gain of about $880,000, or around 11%, on this latest short position. This trade, initiated during Bitcoin’s rebound phase, has gained traction as BTC struggles to maintain momentum above $111,000. The emergence of this position has stirred concern amongst investors and traders, many interpreting it as an indicator that larger players are positioning themselves for renewed downward pressure.
Analysts caution that the situation may not be as straightforward as it appears. Although the 1011short address is known for its precision—especially given its notable profits during the October 10 flash crash—the transparency provided by on-chain data has limitations. It remains unclear how many additional positions this whale may hold across other exchanges or the broader strategy underpinning these trades. Therefore, interpreting BitcoinOG’s actions as a straightforward bearish bet may oversimplify the complexities at play.
The coming days will be pivotal for Bitcoin’s price trajectory. Should the whale decide to increase his short position, it could exacerbate selling pressure, pulling BTC closer to key support levels. Conversely, if BitcoinOG closes his position or shifts to long trades, it might indicate a potential short-term market bottom. Regardless of the direction, this setup signals heightened volatility ahead, with traders preparing for sharp price movements as the market processes this high-profile activity.
Currently, Bitcoin is showing preliminary signs of stabilization on the weekly chart. Following its plunge to nearly $103,000 on October 10, it has rebounded to around $111,200. The current candle structure suggests that buyers are actively defending the 50-week moving average, which has served as a reliable support level throughout the prevailing bull phase.
However, Bitcoin remains trapped below the significant resistance at $117,500, a threshold that has repeatedly thwarted rallies since mid-2025. Without a decisive break above this resistance coupled with strong trading volume, the market will likely continue oscillating in a sideways range, with traders adopting cautious positions amid high volatility and ambiguous macroeconomic conditions.
Momentum indicators reveal a neutral-to-bearish sentiment overall, suggesting that bulls may be hesitant after facing weeks of heavy liquidations. Nevertheless, the presence of higher lows on the weekly chart provides support for the long-term bullish narrative, as long as Bitcoin sustains levels above $106,000–$107,000.
If Bitcoin manages to reclaim and close above the $117,500 resistance, it could pave the way toward $125,000–$130,000, aligning with liquidity pockets formed during previous market peaks. In contrast, a weekly close below $106,000 would alter the sentiment to bearish, indicating that deeper corrections could be on the horizon.
