Bitcoin traders, specifically large-volume investors known as whales, have shifted their sentiment to a bearish outlook just hours before a highly anticipated announcement from former President Donald Trump at the White House. This sudden change comes in the wake of heightened market activity since October 10, when Bitcoin’s price soared to $102,000 on Binance, only to succumb to volatility.
Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin’s recent price movements have struggled to maintain momentum, notably failing to hold above the $110,000 mark. As the cryptocurrency trades in a tight range, optimism is sparse as volatility looms on the horizon with Trump’s scheduled announcement at 3 PM ET, stirring speculations among traders.
Notable Bitcoin advocate Kyle Chasse pointed out an aggressive move by one whale, who initiated a massive 40X leveraged short position on BTC, describing the action as “insane.” Chasse’s comments drew attention to the increasing number of short positions being opened, highlighting a concerning focus on potential negative market news linked to Trump’s upcoming address. He noted that many traders are positioning themselves defensively, anticipating price drops.
Charts shared by Chasse depicted a significant liquidation cluster right above the $106,000 threshold, a level which could serve as a near-term price magnet based on trends in the order books tracked by CoinGlass. This pattern has been evident over the last few weeks, suggesting that certain entities might be attempting to preemptively respond to market-moving headlines and comments from Trump.
Further analysis from onchain analytics platform Glassnode revealed that traders are engaging in defensive strategies, specifically by concentrating their selling activity in the $109,000 to $115,000 range, indicating a hedging approach to safeguard against potential losses.
As bearish market sentiment strengthens, several traders echoed caution regarding Bitcoin’s stability. Trader Roman highlighted the critical support level at $107,000, warning that falling below this mark could lead to a swift downturn for Bitcoin. He emphasized the importance of both horizontal and diagonal support lines, which have been in place for nearly a year and a half.
Another trader, Daan Crypto Trades, concurred that the current volume appears to be lacking. He identified the $111,000 level as a pivotal point; should Bitcoin manage to break and sustain above that price, it could open doors for further gains. However, he acknowledged the significance of maintaining the support established at $107,000 in light of broader market weakness.
As the market watches closely, the interplay between whale activity and external events like political announcements continues to shape Bitcoin’s price trajectory. This evolving situation underscores the inherent risks and complexities of trading cryptocurrencies.
