Short sellers get liquidated; near-term market volatility hinges on whether Warsh strikes a hawkish tone tonight
Bitcoin has climbed back to $81,000, but short sellers were the first to get squeezed. On-chain data shows roughly $152 million in liquidations across the market over the past 24 hours, with shorts accounting for 68%. More than 60,000 traders were liquidated, and shorts made up as much as 84.8% of liquidations in the past 12 hours. Binance alone accounted for 47.8%.
On the surface, it looks like the bulls are fighting back, but I’m inclined to see it as a short squeeze rather than fresh money flowing into the market.
The key levels are $81,500—the cost basis wall for ETF investors—and $87,000, the breakeven zone for two-year holders. These two resistance levels have pushed BTC back down twice so far this year. That’s why tonight’s Fed rate decision will be especially important. A hold at 3.75–4% is all but certain, but whether Warsh strikes a 🦅-hawkish tone in his remarks tonight will be the biggest driver of near-term volatility.
Bitcoin has climbed back to $81,000, but short sellers were the first to get squeezed. On-chain data shows roughly $152 million in liquidations across the market over the past 24 hours, with shorts accounting for 68%. More than 60,000 traders were liquidated, and shorts made up as much as 84.8% of liquidations in the past 12 hours. Binance alone accounted for 47.8%.
On the surface, it looks like the bulls are fighting back, but I’m inclined to see it as a short squeeze rather than fresh money flowing into the market.
The key levels are $81,500—the cost basis wall for ETF investors—and $87,000, the breakeven zone for two-year holders. These two resistance levels have pushed BTC back down twice so far this year. That’s why tonight’s Fed rate decision will be especially important. A hold at 3.75–4% is all but certain, but whether Warsh strikes a 🦅-hawkish tone in his remarks tonight will be the biggest driver of near-term volatility.
