Bitcoin is witnessing a strong growth wave, as the supply of Tether (USDT) reaches a record high, signaling that large liquidity flows are pouring into the cryptocurrency market. However, the big question is whether high-leverage short positions will dominate and trigger a price drop in Bitcoin. The balance between bulls and bears is creating opportunities for new waves of volatility, opening up many possibilities for Bitcoin's next trajectory. With detailed analysis from derivatives market data and information from influential individuals, this article will provide in-depth insights to help you better understand the current trends and potential risks of Bitcoin.
Bitcoin maintains its position in the battle between bulls and bears
Ending Q2 with a strong recovery from the prolonged low at 98,000 USD, Bitcoin has shown significant resilience as fears about geopolitical risks begin to ease. Consequently, the bears—those expecting a prolonged downturn—have largely been pushed out of the market. Derivatives market data indicates that the ratio of long positions likely to be forced liquidated has decreased significantly, now at just 58%—much lower than over 80% a week ago.
This development reflects a strong adjustment in leverage. Even so, as Bitcoin approaches the 110,000 USD threshold, short positions are beginning to emerge, with a clear price range oscillating around 106,000 – 108,000 USD for the bears to maintain their position. This situation reflects intense tension between the two sides, setting the stage for significant price volatility.
A typical example is trader James Wynn, who is known for his high-leverage short positions on Bitcoin. This time, he is betting on a 40x short worth 1.49 million USD, positioned close to the liquidation threshold of 108,630 USD, increasing the likelihood of strong volatility if the price surpasses this level. With this position, Wynn could be the catalyst for the next Bitcoin volatility, whether due to a sharp strategy or due to the risk of repeated mistakes.
Place a question mark at 110,000 USD: Will Bitcoin break through or be rejected?
Unlike the rapid recovery earlier in June, when Bitcoin surged nearly 10% from the low of 100,424 USD and conquered the 110,000 USD threshold in just four consecutive bullish candles, the current rally is slower and more selective. This aligns with an important macro signal: the supply of Tether (USDT) is rising to a record high of 158 billion USD, indicating that stablecoin liquidity is being pumped heavily into the cryptocurrency market.
This increase indicates that smart capital is accumulating Bitcoin, rather than engaging in hot speculation. Notably, according to reports, BlackRock is adding about 1.15 billion USD in Bitcoin each week, reinforcing expectations for sustainable growth in the upcoming third quarter.
If buying pressure is maintained, Wynn's 40x short position and the short ratio of 64% on derivative contracts at Binance could trigger a short squeeze, pushing Bitcoin to a new all-time high. The price of 110,000 USD could serve as a springboard for the next price rally and instill confidence in long-term investors.
Source: https://tintucbitcoin.com/bitcoin-quy-3-btc-len-110-000-usd/
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