Bitcoin’s $520 Million Short Position on the Edge: Liquidation Looms At $85,565

A whale’s $520 million Bitcoin short position faces liquidation risk at $85,565.

Bitcoin’s current price of $84,077 leaves the whale’s position close to forced closure.

Technical indicators like MACD and RSI show weakening selling pressure in Bitcoin’s market.

A whale has increased their Bitcoin short position on Hyperliquid from $400 million to $520 million. Their new liquidation price is set at $85,565, placing the position less than $1,000 away from being wiped out.

Increased Short Position and Liquidation Risk

In a recent post by Bitcoin News on X, a Bear Whale has added $120 million to their existing short position, raising the total to $520 million. The liquidation price now stands at $85,565, meaning any upward price movement beyond this level could force the position to close

Tracking the Liquidation Data, the portfolio contains $15.88 million in perpetual contracts with no spot or vault holdings. The open position is a short BTC trade with 40x leverage, valued at $522 million.

The entry price read at $83,898, while the current price is $84,077. Unrealized losses stand at $1.11 million, with liquidation set at $85,565. The liquidation map shows high cumulative short liquidations at lower price levels, while long liquidations increase above $85,514

Bitcoin’s Price Volatility and Market Reaction

Bitcoin’s price has fluctuated near critical resistance levels, bringing it dangerously close to the short position’s liquidation point. If the price moves above $85,565, a forced liquidation could occur, potentially triggering a short squeeze

MACD and RSI technical indicators suggest a cautious outlook for Bitcoin’s price. The MACD line (-2,673.62) remains below the signal line (-2,988.86), indicating a bearish momentum. However, the histogram shows declining negative bars, suggesting weakening selling pressure

Source: TradingView

The RSI (41.48) remains below the neutral 50 level, indicating weak buying strength but avoiding oversold conditions. Bitcoin is trading at $83,294.82, facing resistance near $84,000 while support is seen at $80,000. A breakout above resistance could signal a reversal, but continued weakness in RSI and MACD suggests a probable retest of lower levels before any recovery.