Bitcoin: Will Q3 unlock BTC’s path to $110K and beyond?

• Bitcoin is driving a contemporary wave of momentum, with USDT provide hitting a brand new all-time excessive.
• Will leverage-heavy shorts take management and set off draw back volatility?

The crypto market is teetering on a knife’s edge. The sentiment is holding impartial as bulls and bears battle for management of Bitcoin [BTC] in a high-stakes tug-of-war.

This sort of setup often opens the door for opportunistic merchants to take sides, creating a super setup for a contemporary volatility squeeze.

In accordance with AMBCrypto, how this standoff resolves may form Bitcoin’s subsequent main leg.

Bulls and bears lock horns as Bitcoin holds the road

Bitcoin is closing out Q2 with a decisive rebound from its multi-month low of $98k, proper because the macro worry began to chill off. That transfer just about worn out the bears who had been pricing in extended geopolitical danger. 

On the time of writing, Futures market data confirmed that solely 58% of longs had been sitting in a possible squeeze zone, down considerably from over 80% only a week in the past.

Clearly, the market simply went by means of a significant leverage reset.

Nonetheless, as Bitcoin creeps again towards that $110k goal, shorts are beginning to circle once more. And with worth stabilizing within the $106k-$108k vary after the early-week breakout, bears now have a clearly outlined zone to defend.

Supply: TradingView (BTC/USDT)

Nothing captures this higher than James Wynn, a dealer who’s made headlines this cycle for repeatedly taking high-leverage BTC positions that usually finish in liquidation.

He’s again at it, this time with a 40x brief price $1.49 million, sitting dangerously near a liquidation degree of $108,630. It’s an aggressive bet that locations him proper on the fringe of present worth motion.

Whether or not Wynn is seeing one thing the broader market isn’t or just repeating outdated errors, his place may turn out to be the set off for Bitcoin’s subsequent volatility spike. 

The $110k query: Breakout or rejection?

Not like the swift early-June rebound the place Bitcoin rallied practically 10% off the $100,424 weekly low and reclaimed $110k in simply 4 bullish candles, this present worth motion appears extra measured.

The shift in tempo aligns with a key macro sign: Tether’s [USDT] circulating provide simply printed a contemporary all-time excessive at $158 billion, pointing to rising stablecoin liquidity flowing into the system.

Supply: Glassnode

On this context, Bitcoin’s extra gradual climb may replicate sensible cash accumulation moderately than speculative chasing, particularly with BlackRock reportedly including $1.15 billion in BTC weekly.

This paints its present consolidation as a possible launchpad for a extra calculated $110k retest heading into early Q3.

If upward stress persists, Wynn’s 40x brief and the 64% short skew on Binance derivatives may turn out to be structural gas for a brief squeeze, positioning BTC for a contemporary all-time excessive.