Key factors:
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Bitcoin makes an attempt a rebound right into a cluster of shorts as market expectations flip bearish on BTC and altcoins.
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Speculative ETH merchants kind the largest-ever leveraged brief postion, per information from CME Group.
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Crypto merchants may very well be de-risking forward of the US Federal Reserve’s Jackson Hole symposium.
Bitcoin (BTC) returned to $116,000 after Monday’s Wall Street open as bulls fought to set off a brief squeeze.
BTC, ETH value charts present shorts now in danger
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD stemming in a single day losses, which noticed a retreat to close $115,000.
The cross-crypto sell-off had liquidated round $500 million in lengthy positions in 24 hours on the time of writing, per information from CoinGlass.
Traders, already cautious of market weak point, continued to forecast contemporary lows for Bitcoin and altcoins.
“This might be the worst case state of affairs for $BTC now. It’ll proceed to consolidate between $112K-$120K in Q3, whereas alts will head greater,” fashionable dealer BitBull wrote in a part of his newest X evaluation.
“We might even see a capitulation wick beneath $112K, identical to we had a pump above $124K.”
Crypto dealer, analyst and entrepreneur Michaël van de Poppe agreed.
“If Bitcoin would not break $116.8K, I assume we’ll see a sweep of the lows, and that is going to be the second that everybody says ‘begin of bear market’, then you definitely purchase,” he summarized.
Exchange order books nonetheless revealed that many merchants held a extra categorical view of short-term value motion.
Speculative Ether (ETH) merchants, finance and buying and selling useful resource Barchart famous on the day, had now constructed the largest-ever leveraged brief place on the altcoin.
Speculators have now constructed the most important leveraged Ethereum $ETH brief place in historical past 🚨🚨 pic.twitter.com/CRKS2YgZAk
— Barchart (@Barchart) August 18, 2025
Some noticed the potential for a brief squeeze to return subsequent, with X analytics accounts focusing on each BTC and a “cluster” of ETH shorts.
CoinGlass confirmed {that a} key brief liquidation stage for BTC/USD was at $116,500.
Jackson Hole tipped for Fed rate-cut hints
Considering the explanations for the drawdown, buying and selling agency QCP Capital pointed to macroeconomic components.
Related: Dip consumers ‘stopped the prepare,’ 5 issues to know in Bitcoin this week
The US Federal Reserve’s annual Jackson Hole symposium this week is a basic de-risking occasion for merchants, it mentioned, whereas inflation stays a scorching matter.
“Sideways commerce appears seemingly, with dips close to 112k attracting consumers and rallies towards 120k assembly provide, a minimum of till Friday when Fed Chair Jerome Powell takes the stage,” it forecast in its newest “Asia Color” submit.
“Thursday’s greater‑than‑anticipated PPI numbers (producer costs jumped 0.9% month‑on‑month towards a 0.2% forecast) have sophisticated the Fed’s coverage framework, so the market will probably be searching for hints on the Fed’s considering forward of its September coverage assembly.”
QCP added that Powell’s 2024 Jackson Hole speech had contained helpful factors for future coverage easing.
This article doesn’t comprise funding recommendation or suggestions. Every funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.
