Bitcoin Trader Swaps $1.25B Long for Short as BTC Price Slides Under $108K

Bitcoin’s price dropped below $108,000 due to U.S. trade tensions, with traders like James Wynn going short after a long position. Despite the decrease, many analysts believe Bitcoin can return to higher levels while maintaining a bullish trend. Market participants continue to watch for significant price movements in the coming week.

Bitcoin has experienced a downward trend, slipping under the $108,000 mark as it faces turbulence from U.S. trade tensions. The mood among traders, however, remains relatively optimistic, with many asserting that Bitcoin could still manage a bull run while possibly testing lower levels. Notably, Hyperliquid trader James Wynn, after closing a long position valued at around $1.25 billion, has decided to go short on Bitcoin.

The cryptocurrency’s struggles coincide with the broader market’s woes linked to President Trump’s recent remarks about imposing hefty tariffs on EU goods. Following the price dip that brought Bitcoin almost to its multiday lows, market analysts are weighing in. Keith Alan, co-founder of Material Indicators, labeled Trump’s comments as “more hot air from the Manipulator in Chief.” While critical, he suggests that Bitcoin’s prospects to retest support levels remain intact.

Alan also pointed out a crucial price point on the Bitcoin daily chart, emphasizing, “As long as BTC is trading above that zone, the Bull trend is still intact.” Other traders, such as Crypto Tony, mirrored these sentiments, indicating that a dip of $4,000 wouldn’t necessarily spell doom for the cryptocurrency. Tony puts emphasis on a close above $104,000 as a sign of resilience.

Heightened scrutiny comes with Wynn’s sudden pivot to shorting Bitcoin. As spotlighted by research firm Lookonchain, after his substantial long position lost profitability due to the volatile environment fostered by trade tariff concerns, he shifted gears. Now holding a short position worth approximately $110 million, Wynn’s actions have sparked discussions among traders.

“That’s a lot of trading for an illiquid choppy weekend,” remarked trader Daan Crypto Trades in response to Wynn’s short bet. Meanwhile, another trader, Merlijn, pointed out a potential gap in Bitcoin futures trading, stating that a gap left at $107,230 needs to be filled, drawing attention to further possible price movements.

Despite current uncertainties, Bitcoin advocates are keeping a steady course, believing the broader upward trajectory isn’t erased just yet. As the week unfolds, market watchers will be keeping a keen eye on how Bitcoin navigates these waters amid ongoing tariff tensions.

In summary, Bitcoin’s recent dip under $108,000 raises questions as U.S. trade tensions ripple through the market. However, traders maintain an optimistic outlook, suggesting the potential for a continued bull trend even if prices test lower. James Wynn’s decision to shift from a long to a short position, alongside commentary from other traders, indicates a vigilant crowd prepared for a volatile ride. All eyes will now be on Bitcoin’s upcoming performance and whether it can reclaim higher ground amidst these challenges.

Original Source: cointelegraph.com