Is A Bitcoin Crash Coming After Price Crossed $100K?—Details…

Key Insights:

• Bitcoin crash could be on its way, just like when the price of BTC crossed the $65K mark.
• A whale deposited $40.5M USDC into HypeLiquid to increase the short position on BTC, ETH, and SOL with a 5x leverage.
• The dense liquidity clusters forming below the price could trigger more drops as Bitcoin moves to get the liquidity.

A potential Bitcoin (BTC) crash could be panning out after the price surpassed the $100K, where whales seemed to increase their short positions from the $104K level.

Is a Bitcoin Crash Coming?

The latest Bitcoin gain to test $104,000 raised angst about a re-crash, like in late 2021, above the $65,000 level.

BTC strongly rallied from around $77,000, shaking off the $96,000 resistance to post a high of $108,000 after which it pulled back.

This reflected the 2021 structure, when BTC flew above $65,000 and reached almost $69,000, then fell.

The current pattern setup was almost the same, with long wicks and consolidation before a sharp breakout, and maybe it’s suggesting exhaustion.

Taking place at $104,321.1 or less may be followed by a pullback to the $96,000 area. Runs below this level may request further depreciation down to $87,000 and possibly the more important $77,000, a support record.

But a break to the upside accompanied by a series of closes above $104,000 could build a continuation move to $112,000 or $120,000.

A breakout above critical resistance following a consolidation range was similar to prior cycle tops. If momentum dies out, history might repeat itself.

However, if demand at the institutions was maintained, BTC could break the trend and return to new ATHs. Traders now faced the question: Is this breakout real, or the calm before a massive turnaround as in 2022?

Whale Adding Leveraged Short Orders

Meanwhile, a whale funnelled $40.5 Million USDC into HyperLiquid, apportioning money to add on more short positions.

This increased the leveraged short orders of BTC to $68.80 Million, ETH to $56.15 Million, SOL to $33.06 Million, all using the added stablecoin balance.

The BTC short was 657 BTC $104.26K entry targeting a liquidation $159.01K. Losses that had not been realized declined – $277K (-2.02%).

This rapid short bets against the assets, in particular the case of BTC, indicated rising bearish conviction in sync with the increasing potential for a crash.

While this may indicate further downside should price pullback, this also puts the risk machine in play for shorts if BTC managed to break out above resistance for a potential short squeeze.

The whale’s move bolstered the bearish thesis, particularly as the BTC tested the $104K region, an important area replicated at previous cycle highs.

However, if BTC managed to consolidate or rally higher still, these leveraged shorts may be trapped with rapid liquidations possible and the price rocketing higher.

How Liquidity Clusters Could Fuel More Drop

Again, Bitcoin crash could be predicted from wild liquidity clusters that were thickening at levels below $100K.

These visible bands, particularly between $97,000 and $89,000, indicated high cluster resting orders, probably in an environment with low volume, as attractors.

If price continued going down, then it could tear through these zones to fill in orders, possibly moving BTC closer to $89,000-$91,000 or lower.

If BTC moved up, there would be greater liquidity, thus creating a possibility of prices rising even faster, but slipping on backtest tests.

On the other hand, a southward drift toward these dense aggregates may be digested at a slower pace, to slow the decline but increase the danger on the downside, with buyers being overrun.

This heatmap-led metric indicated more downside potential but was still reactive to prompt buyer demand flare-ups or macro shifts.