Smart Money Builds Short Positions in BTC & SOL — A Signal Traders Can’t Ignore

On-chain data tracked by BlockBeats and AI tool CoinBob shows a prominent address dubbed “Calm Order King” has significantly increased short positions in both Bitcoin and Solana:

Short on 159 BTC (≈ $17.9M) at an average entry of $113,200 with 40× leverage.

Simultaneously holding a 20× leveraged short on SOL valued at ≈ $27.6M, posting near 50% floating gain.

Why it matters:

Smart-money increasing shorts hints at broader top-side risk and suggests professional traders may be betting on a fresh downward leg. These are not casual trades—they’re large-scale, leveraged bets that could influence broader sentiment and price structure.

What traders should keep an eye on:

If BTC starts breaking key supports (e.g., ~$110K-112K) this could validate smart money’s bearish tilt.

SOL’s support zone and liquidation clusters may trigger additional pressure if short-term updrafts fail.

Monitor funding rates, open interest and short-position clusters — these can flip quickly and ignite volatility.

Use structure over emotion: This could be a setup zone not a guaranteed reversal.

My take:

This is a cautionary signal. I’m not abandoning bullish conviction yet, but I’m tightening exposure, lowering leverage, and waiting for clearer confirmation. If BTC & SOL can hold support and flip funding positive, that could mark the start of a low-risk long setup. Until then, risk control is key.