Bitcoin [BTC] Bounces 3% From Its Intraday Low, FOMO Kicks In As Whales Get Squeezed

Since Bitcoin [BTC] dropped 3.79% intraday from its all-time high of $111,689

Bitcoin [BTC] price dropped 3.79% to session lows of $105,105 on 23rd May, following a 3.79% decline from its all-time high of $111,689.

As opportunistic shorts moved in to capitalize on the cryptocurrency’s downfall, strategists at Benzinga continue to follow the key price levels to watch.

After dropping 3.79% from its all-time high of $111,689 on 23rd May to session lows of $105,105, Bitcoin price is up nearly 3% from that close.

While some might be focused on a “temporary” bounce, data from AMBCrypto suggests this rebound could be more than just noise. Instead, it might be the ignition point for a much larger rally.

Earlier this week, AMBCrypto highlighted a whale that loaded up on a massive 11,000 BTC long position, valued at a whopping $1.25 billion with 40x leverage.

However, as Bitcoin neared the liquidation cluster around $105k, the whale pulled the plug and closed out the trade. All that liquidity was swallowed up like water by a sponge.

But the whale missed the bigger picture. Just 24 hours later, the same whale flipped short with nearly $1 billion on the line, setting the liquidation mark at $111,280.

The timing couldn’t have been worse. Two bullish macro catalysts hit the tape, squeezing the position and forcing a premature exit, resulting in a $15.87 million loss. Since then, Bitcoin has bounced back to trade near $110,000 at press time.

Source: CryptoQuant

The short thesis clearly backfired, and it seems like traders are quickly shifting their attention to the next move.

As the chart above shows, Bitcoin’s Taker Buy Volume just blasted past $110.7 million across all exchanges.

Furthermore, Open Interest has surged 3.74% to $77.44 billion, marking an addition of $2.45 billion in fresh open positions from the previous day. And we’re only halfway through the session.

Looks like FOMO is kicking in.

Two massive bets got squeezed and absorbed in under 72 hours, highlighting strong underlying bid support for Bitcoin.

Now, the remaining shorts are rolling over like bad sushi. About 61.81% of Binance’s BTC/USDT perpetual contracts are short.

If demand cracks from here, keep an eye on the 12-hour chart. There’s a juicy liquidity cluster at $108,478 with $68.57 million in leverage up for grabs.

Source: Coinglass

But if support sticks, another cluster at $110,682 (also packing $68.57 million in leverage) could spark a fresh run at a new all-time high.

Considering Michael Saylor’s track record, history might be repeating itself. Another short squeeze incoming? The chances are high.