Bitcoin and Ether are showing signs of a potential short squeeze as traders have established record-high short positions on Ether. This comes as the market anticipates potential shifts in Federal Reserve policy, with traders de-risking ahead of the Jackson Hole symposium.

Key Takeaways

• Bitcoin is attempting a rebound, facing a cluster of short positions.
• Speculative traders have built the largest-ever leveraged short position on Ether (ETH).
• Macroeconomic factors, particularly the upcoming US Federal Reserve symposium, are influencing market sentiment.

Bitcoin and Ether Face Potential Short Squeeze

Bitcoin (BTC) is showing signs of a rebound, with bulls fighting to trigger a short squeeze. Data indicates that a significant cluster of short positions exists around the $116,500 mark for BTC/USD. Meanwhile, speculative traders have amassed the largest-ever leveraged short position on Ether (ETH), according to CME Group data. This build-up of short positions suggests that a sharp upward price movement could lead to significant liquidations for those betting against the market.

Market Sentiment and Macroeconomic Influences

Market sentiment appears to be turning bearish, with many traders forecasting further lows for Bitcoin and altcoins. Analysts suggest that Bitcoin might consolidate between $112,000 and $120,000 in the third quarter, while altcoins could see gains. However, the upcoming Jackson Hole symposium is a key event that could influence future market direction. Traders are closely watching for any hints from Federal Reserve Chair Jerome Powell regarding interest rate policy, especially after recent higher-than-expected producer price index (PPI) numbers.

Trader Strategies and Outlook

Some traders believe that a potential capitulation wick below $112,000 for Bitcoin is possible, similar to a previous pump above $124,000. Others suggest that if Bitcoin fails to break above $116,800, a sweep of the lows could occur, which might be an opportune moment to buy. The current market environment is characterized by cautious trading, with dips attracting buyers and rallies facing selling pressure, at least until Friday when Powell is scheduled to speak.

Sources

• Bitcoin, Ether set for squeeze as traders go record short ETH at $4.3K
• Bitcoin News Today: Bitcoin, Ether Near Short Squeeze as ETH Shorts Hit Record High
• Ethereum’s fate in jeopardy as largest-ever ETH shorts emerge
• Ethereum short positions reach record high despite bullish sentiments

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