This is the Ethereum one-month liquidation heatmap, and this is where the picture gets very interesting.
The standout level is the major downside liquidity sitting around $1,800. That is a very significant liquidation zone, and if Ethereum starts moving lower with momentum, that area becomes an obvious downside target.
However, above and below the current price, there is not a huge amount of immediate liquidation exposure. That tells us Ethereum is still trading in a bit of a no-man’s land.
In this kind of environment, it is dangerous to take an overly aggressive directional bias too early. The market is still deciding which side it wants to punish first. If futures traders pile too heavily into one side, that side can quickly become the liquidity target.
That said, I am still holding my short position, and I have now increased it to around $6 million.
My view has not changed. I think the trade is correct, and I am positioning accordingly.
The important part is risk management. The maximum I am willing to lose on this setup is around $100,000 on a $2 million account, which would be roughly a 5% drawdown. That is not ideal, but it is recoverable if managed properly and followed by a strong trade on the next setup.
For now, I still believe I am on the right side of the market. I think this trade just needs a bit more time to play out.
As always, I will be watching the market closely. If the setup changes, I will update you. If I need to close the short, take the loss, or even flip into a long position, I will let you know.
The standout level is the major downside liquidity sitting around $1,800. That is a very significant liquidation zone, and if Ethereum starts moving lower with momentum, that area becomes an obvious downside target.
However, above and below the current price, there is not a huge amount of immediate liquidation exposure. That tells us Ethereum is still trading in a bit of a no-man’s land.
In this kind of environment, it is dangerous to take an overly aggressive directional bias too early. The market is still deciding which side it wants to punish first. If futures traders pile too heavily into one side, that side can quickly become the liquidity target.
That said, I am still holding my short position, and I have now increased it to around $6 million.
My view has not changed. I think the trade is correct, and I am positioning accordingly.
The important part is risk management. The maximum I am willing to lose on this setup is around $100,000 on a $2 million account, which would be roughly a 5% drawdown. That is not ideal, but it is recoverable if managed properly and followed by a strong trade on the next setup.
For now, I still believe I am on the right side of the market. I think this trade just needs a bit more time to play out.
As always, I will be watching the market closely. If the setup changes, I will update you. If I need to close the short, take the loss, or even flip into a long position, I will let you know.
👍6❤2
Now we’re looking at the current crypto funding rates across the major exchanges and tradable coins.
The main thing that stands out is that funding is predominantly negative across the market. When funding is negative, it means traders are being paid to open long positions, because the short side is currently more crowded.
So right now, if you are opening a long position, you are technically taking the less popular side of the trade.
This is where people immediately start talking about a potential short squeeze. And yes, that is always possible. But proper short squeezes usually happen when funding becomes extremely negative and price keeps pushing higher, forcing shorts to unwind aggressively.
At the moment, what this data really tells us is that a large number of short positions have opened in the short term. That lines up with the open interest analysis we have already covered today.
So going into this morning, the market does not appear fully convinced that the overnight recovery pump is going to hold.
That does not mean the short is automatically right. If price keeps pumping and funding gets more extreme, then being short too early becomes the risk.
But for now, the data suggests traders are still leaning bearish, and the next thing we need to identify is the level where this short thesis becomes invalid.
That is what I’ll cover next.
The main thing that stands out is that funding is predominantly negative across the market. When funding is negative, it means traders are being paid to open long positions, because the short side is currently more crowded.
So right now, if you are opening a long position, you are technically taking the less popular side of the trade.
This is where people immediately start talking about a potential short squeeze. And yes, that is always possible. But proper short squeezes usually happen when funding becomes extremely negative and price keeps pushing higher, forcing shorts to unwind aggressively.
At the moment, what this data really tells us is that a large number of short positions have opened in the short term. That lines up with the open interest analysis we have already covered today.
So going into this morning, the market does not appear fully convinced that the overnight recovery pump is going to hold.
That does not mean the short is automatically right. If price keeps pumping and funding gets more extreme, then being short too early becomes the risk.
But for now, the data suggests traders are still leaning bearish, and the next thing we need to identify is the level where this short thesis becomes invalid.
That is what I’ll cover next.
👍1
The first scenario to look at is the bear case. I’ll cover the bull case next.
On this zoomed-in daily chart, the key level is around $79,900. Bitcoin came down to that area yesterday, but it did not properly break below it.
If price comes back down today and loses that level, the structure becomes much more interesting, because below $79,900 there is a large liquidity gap down towards roughly $77,000.
That is the trade I am trying to capture.
A move from around $79,900 down towards $77,000 is nearly a $3,000 move. When you apply that to a position of roughly 66 Bitcoin short, that becomes a very meaningful trade.
This is the downside setup I am currently positioned for.
There are also several major liquidity levels below the market:
* $77,000
* $74,000
* $70,000
If Bitcoin breaks cleanly below $79,900 and moves into $77,000, I do not think the downside necessarily stops there. A move to $77,000 could easily lead to a further move towards $74,000, followed by a bounce, and then potentially a deeper move towards $70,000 if the market really starts to unwind.
That would be a much more serious breakdown.
Right now, Bitcoin is stagnating around these levels because the market is still waiting for more political and macro clarity. It is not fully breaking down yet because the recent headlines have been more constructive than they were before, which makes the short trade more difficult.
But from a technical perspective, the bear case is still very clear:
If Bitcoin loses $79,900, the next major downside target is $77,000, and below that the market opens up towards $74,000 and potentially $70,000.
Next, I’ll show the bull case and explain the level where this short thesis starts to become invalidated.
On this zoomed-in daily chart, the key level is around $79,900. Bitcoin came down to that area yesterday, but it did not properly break below it.
If price comes back down today and loses that level, the structure becomes much more interesting, because below $79,900 there is a large liquidity gap down towards roughly $77,000.
That is the trade I am trying to capture.
A move from around $79,900 down towards $77,000 is nearly a $3,000 move. When you apply that to a position of roughly 66 Bitcoin short, that becomes a very meaningful trade.
This is the downside setup I am currently positioned for.
There are also several major liquidity levels below the market:
* $77,000
* $74,000
* $70,000
If Bitcoin breaks cleanly below $79,900 and moves into $77,000, I do not think the downside necessarily stops there. A move to $77,000 could easily lead to a further move towards $74,000, followed by a bounce, and then potentially a deeper move towards $70,000 if the market really starts to unwind.
That would be a much more serious breakdown.
Right now, Bitcoin is stagnating around these levels because the market is still waiting for more political and macro clarity. It is not fully breaking down yet because the recent headlines have been more constructive than they were before, which makes the short trade more difficult.
But from a technical perspective, the bear case is still very clear:
If Bitcoin loses $79,900, the next major downside target is $77,000, and below that the market opens up towards $74,000 and potentially $70,000.
Next, I’ll show the bull case and explain the level where this short thesis starts to become invalidated.
👍4
This is the simplified bull case for Bitcoin right now.
The way I’m viewing it is very simple: there are two key resistance levels above current price.
The first is the short-term downward sloping resistance line. That level is sitting roughly $500 above current price, around $81,500. If Bitcoin breaks through that, the next key level is around $82,000.
For me, $82,000 is the major invalidation level.
If Bitcoin gets above that level and holds, then my short thesis becomes much weaker. At that point, I would be looking at a meaningful unrealised loss, likely somewhere around $60,000, depending on position size and execution.
That is uncomfortable, but it is still inside the risk parameters I set for this trade. I have already said that I am willing to risk up to around $100,000 on this setup, so I can tolerate some adverse movement if the structure still makes sense.
If Bitcoin breaks above $82,000, the market moves back into a much less clear liquidity zone. From there, upside liquidity could start acting like a magnet, and the bullish argument would be that Bitcoin can continue pushing higher, potentially even towards the wider upside liquidity zones.
That is the risk of the short trade.
However, the reason I am still leaning bearish is because the broader data does not yet convince me that this recovery pump is structurally strong. ETF flows have turned negative, funding shows shorts are crowded but not yet extreme, and open interest across the market suggests traders are still positioning defensively.
On top of that, the broader macro backdrop still feels fragile. The Michael Burry thesis is still active: markets are stretched, AI-related valuations look extremely expensive, and risk assets can remain overvalued for a long time before they finally correct.
So to be clear, I would not be shocked if Bitcoin revisits $81,500 before the US open. That is a very realistic short-term move.
But for the bigger picture, I still think the more important level is to the downside.
If Bitcoin loses $79,900, the market opens up towards $77,000, and that is the trade I am trying to capture.
So the bull case is simple:
Bitcoin needs to break $81,500, then reclaim $82,000.
Until that happens, I still believe the downside setup is more attractive than the upside setup.
The way I’m viewing it is very simple: there are two key resistance levels above current price.
The first is the short-term downward sloping resistance line. That level is sitting roughly $500 above current price, around $81,500. If Bitcoin breaks through that, the next key level is around $82,000.
For me, $82,000 is the major invalidation level.
If Bitcoin gets above that level and holds, then my short thesis becomes much weaker. At that point, I would be looking at a meaningful unrealised loss, likely somewhere around $60,000, depending on position size and execution.
That is uncomfortable, but it is still inside the risk parameters I set for this trade. I have already said that I am willing to risk up to around $100,000 on this setup, so I can tolerate some adverse movement if the structure still makes sense.
If Bitcoin breaks above $82,000, the market moves back into a much less clear liquidity zone. From there, upside liquidity could start acting like a magnet, and the bullish argument would be that Bitcoin can continue pushing higher, potentially even towards the wider upside liquidity zones.
That is the risk of the short trade.
However, the reason I am still leaning bearish is because the broader data does not yet convince me that this recovery pump is structurally strong. ETF flows have turned negative, funding shows shorts are crowded but not yet extreme, and open interest across the market suggests traders are still positioning defensively.
On top of that, the broader macro backdrop still feels fragile. The Michael Burry thesis is still active: markets are stretched, AI-related valuations look extremely expensive, and risk assets can remain overvalued for a long time before they finally correct.
So to be clear, I would not be shocked if Bitcoin revisits $81,500 before the US open. That is a very realistic short-term move.
But for the bigger picture, I still think the more important level is to the downside.
If Bitcoin loses $79,900, the market opens up towards $77,000, and that is the trade I am trying to capture.
So the bull case is simple:
Bitcoin needs to break $81,500, then reclaim $82,000.
Until that happens, I still believe the downside setup is more attractive than the upside setup.
👍12❤2
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PLEASE CHECK AND REPORT BACK THIS WILL REDUCE FEES ON THE PLATFORM SIGNIFICANTLY MAKING IT CHEAPER THAN ANY OTHER EXCHANGE
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👍2❤1
I SHORTED BITCOIN WITH $6 MILLION. MARKET STRUCTURE IS BREAKING.
Watch Now👇
https://youtu.be/9sSwlcqSirY
Watch Now👇
https://youtu.be/9sSwlcqSirY
YouTube
I SHORTED BITCOIN WITH $6 MILLION. MARKET STRUCTURE IS BREAKING.
BITCOIN PRICE ANALYSIS | BITCOIN PREDICTION | BITCOIN NEWS | BITCOIN ETF FLOWS | BITCOIN LIQUIDATION HEATMAP
Bitcoin is sitting at a critical level, and today I break down exactly why I am now short Bitcoin with a $6 million position.
In this video, I cover…
Bitcoin is sitting at a critical level, and today I break down exactly why I am now short Bitcoin with a $6 million position.
In this video, I cover…
I SHORTED BITCOIN WITH $6 MILLION. MARKET STRUCTURE IS BREAKING.
Watch Now👇
https://youtu.be/9sSwlcqSirY
Watch Now👇
https://youtu.be/9sSwlcqSirY
YouTube
I SHORTED BITCOIN WITH $6 MILLION. MARKET STRUCTURE IS BREAKING.
BITCOIN PRICE ANALYSIS | BITCOIN PREDICTION | BITCOIN NEWS | BITCOIN ETF FLOWS | BITCOIN LIQUIDATION HEATMAP
Bitcoin is sitting at a critical level, and today I break down exactly why I am now short Bitcoin with a $6 million position.
In this video, I cover…
Bitcoin is sitting at a critical level, and today I break down exactly why I am now short Bitcoin with a $6 million position.
In this video, I cover…
🔥4
If I was cashing out, I’m not, I’d probably take 50% off here.
At $75,000, you’d be mad not to bank a big chunk of profit. That’s a monster move.
But I didn’t enter this trade to clip a decent win and walk away.
I came here for the jackpot.
So I’m holding.
At $75,000, you’d be mad not to bank a big chunk of profit. That’s a monster move.
But I didn’t enter this trade to clip a decent win and walk away.
I came here for the jackpot.
So I’m holding.
🔥4❤1
I told it i think its smart to close 50% but im not going to because its boring