- Bitcoin is riding a fresh wave of momentum, with USDT supply hitting a new all-time high.
- Will leverage-heavy shorts take control and trigger downside volatility?
The crypto market is teetering on a knife’s edge. The sentiment is holding neutral as bulls and bears battle for control of Bitcoin [BTC] in a high-stakes tug-of-war.
This kind of setup usually opens the door for opportunistic traders to take sides, creating an ideal setup for a fresh volatility squeeze.
According to AMBCrypto, how this standoff resolves could shape Bitcoin’s next major leg.
Bulls and bears lock horns as Bitcoin holds the line
Bitcoin is closing out Q2 with a decisive rebound from its multi-month low of $98k, right as the macro fear started to cool off. That move pretty much wiped out the bears who were pricing in prolonged geopolitical risk.
At the time of writing, Futures market data showed that only 58% of longs were sitting in a potential squeeze zone, down significantly from over 80% just a week ago.
Clearly, the market just went through a major leverage reset.
Still, as Bitcoin creeps back toward that $110k target, shorts are starting to circle again. And with price stabilizing in the $106k-$108k range after the early-week breakout, bears now have a clearly defined zone to defend.
Source: TradingView (BTC/USDT)
Nothing captures this better than James Wynn, a trader who’s made headlines this cycle for repeatedly taking high-leverage BTC positions that often end in liquidation.
He’s back at it, this time with a 40x short worth $1.49 million, sitting dangerously close to a liquidation level of $108,630. It’s an aggressive bet that places him right at the edge of current price action.
Whether Wynn is seeing something the broader market isn’t or simply repeating old mistakes, his position could become the trigger for Bitcoin’s next volatility spike.
The $110k question: Breakout or rejection?
Unlike the swift early-June rebound where Bitcoin rallied nearly 10% off the $100,424 weekly low and reclaimed $110k in just four bullish candles, this current price action looks more measured.
The shift in tempo aligns with a key macro signal: Tether’s [USDT] circulating supply just printed a fresh all-time high at $158 billion, pointing to growing stablecoin liquidity flowing into the system.
Source: Glassnode
In this context, Bitcoin’s more gradual climb could reflect smart money accumulation rather than speculative chasing, especially with BlackRock reportedly adding $1.15 billion in BTC weekly.
This paints its current consolidation as a potential launchpad for a more calculated $110k retest heading into early Q3.
If upward pressure persists, Wynn’s 40x short and the 64% short skew on Binance derivatives could become structural fuel for a short squeeze, positioning BTC for a fresh all-time high.
