Bitcoin to $74K? Hyperliquid whale opens new 1,240 BTC short

Key takeaways:

• Bitcoin's rising wedge pattern suggests a potential drop to $74,000 if a key support level fails.

• A new whale has placed $140 million in short bets on BTC.

Bitcoin’s (BTC) technical setup suggests a deeper correction to $74,000 is possible, as whales have increased their short exposure to BTC.

Bitcoin’s rising wedge targets a 34% price drop

The weekly chart shows the BTC/USD pair trading within a rising wedge, with the price testing support from the lower trendline of the pattern at $110,000. 

Related: US Bitcoin and Ether ETFs rebound as Powell signals rate cuts

A weekly candlestick close below this level will clear that path for Bitcoin’s drop toward the wedge’s bearish target at $74,000, representing a 34% decline from the current price. This also coincides with its previous peak reached in March 2024. 

BTC/USD daily price chart. Source: Cointelegraph/TradingView

Bitcoin’s bearish case is supported by a growing bullish divergence between its price and the relative strength index, as shown in the chart above.

Rising wedges are typically bearish reversal patterns, and BTC’s continued consolidation within the pattern’s trendlines suggests that “Bitcoin’s bull run is nearing its end,” according to analyst Captain Faibik.

 “Bitcoin is still inside the rising wedge and bulls are in control for now, but not for long,” the analyst said in an X post on Wednesday, adding:

Veteran trader Peter Brandt said Bitcoin could see a “major shakeout” before returning to its all-time highs above $126,000.

As Cointelegraph reported, several technical and onchain metrics suggest that the BTC/USD pair could drop to $74,000 in the worst-case scenario if the price failed to hold above the $110,000 support level. 

Bitcoin whale places $140 million BTC short bet

Bitcoin bears doubled down on their BTC short exposures as calls for deeper price drawdown have grown louder. 

Data from Lookonchain shows that a Hyperliquid whale has placed a short position worth $140 million, at 5x leverage and a liquidation price of $137,700.

This is not the only whale betting on Bitcoin’s downside. On Tuesday, another Bitcoin whale that shorted BTC last week added to a $500 million downside bet, with 10x leverage.

Meanwhile, onchain data showed that the ratio of unrealized profit and loss (NUPL) has shifted from “optimism” to “euphoria,” a trend that has preceded blow-off tops in the past.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.