A trader with a track record of successful bearish calls exited a large Bitcoin (CRYPTO: BTC) short late Monday as the leading cryptocurrency climbed to $81,000.
Traders Exits Before Shorts Get Wrecked
The trader closed a 700 BTC position valued at $56.68 million at the time of reporting, incurring a $1.94 million loss after holding for nearly 70 hours.
This single move erased $1.71 million in profits from their eleven prior successful BTC shorts.
Interestingly, the closure came hours before Bitcoin recaptured $81,000 for the first time since Jan. 31, perhaps in an effort to limit losses and avoid liquidation.
Bitcoin’s spike caught short position traders off guard, with $130 million in bearish bets liquidated over the last 24 hours, according to Coinglass.
Open Interest Jumps, But Traders Still Bearish
Open interest in BTC futures surged 4.22% in the 24 hours, signaling heightened interest among speculative traders.
That said, the majority of whale and retail traders remained “extremely bearish” on BTC, evidenced by a higher number of shorts vis-à-vis longs.
Will Bitcoin Get Close To $100,000?
Widely followed cryptocurrency analyst and trader Ali Martinez said Bitcoin is showing “structural strength,” with the 200-day simple moving average at $83,000 serving as its “most significant psychological and structural barrier.”
“A clean daily close above this hurdle could clear the path for a macro expansion toward $89,000, with a secondary target at $94,000,” Martinez predicted.
Price Action: At the time of writing, BTC was exchanging hands at $80,691.06, up 1.25% in the last 24 hours, according to data from Benzinga Pro.
Benzinga Note: Leverage trading allows cryptocurrency traders to open larger positions using borrowed capital. While it can potentially amplify profits, it also significantly increases the risk of substantial losses due to the volatile nature of cryptocurrencies.
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