- James Wynn’s 40x BTC short near $108K faces risk as Bitcoin hovers just below his $108,630 liquidation level amid high volatility.
- From 2022 to 2025, Bitcoin long liquidations peaked during crashes but now occur more frequently with smaller magnitudes due to diversification.
- Bitcoin’s inverted head and shoulders breakout above $110K suggests a bullish trend continuation as traders eye sustained momentum.
Bitcoin exhibits heightened volatility as leveraged positions drive sharp market reactions. According to Lookonchain, prominent trader James Wynn has opened a 40x leveraged short position, totaling 13.9 BTC valued at $1.49 million. The position’s liquidation price stands at $108,630, just above current levels. Bitcoin now trades at $108,300, placing this short trade at risk.
Besides, long liquidation data from CryptoQuant reveals market trends between 2022 and 2025. Peak long liquidations occurred in November 2022, nearing 10,500 BTC. This spike coincided with Bitcoin’s drop to $15,000–$20,000 following the FTX collapse. Hence, panic selling and forced closures defined that period.
Institutional Growth and Market Evolution
Consequently, Bitcoin began recovering in early 2023, moving from $15,000 to over $30,000. Long liquidations dropped sharply during this rise. Moreover, improved market sentiment and reduced leverage showed a shift in trader behavior.
By the end of 2023, Bitcoin crossed $40,000. Liquidations remained low, staying under the 2,000 BTC mark. This phase showed market maturity and greater stability.
In 2024, Bitcoin surged from $40,000 to above $100,000. This rapid growth reignited leveraged activity, with liquidation spikes near resistance zones. Notably, 2025 data shows Bitcoin sustaining prices over $100,000. Long liquidations, however, remain frequent, peaking at 7,000 BTC during volatile phases.
Additionally, institutional involvement has reshaped the market structure. Liquidations now occur more often but in smaller chunks. This suggests more diversified positions across major exchanges.
Reversal Pattern Fuels Bullish Outlook
Meanwhile, trader Merlijn notes that Bitcoin is forming a textbook inverted head and shoulders pattern. This classic reversal formation began in early 2025.
Source: Merlijn The Trader
Bitcoin reached $108,000, then declined to sub-$80,000 during March and April. That movement formed the pattern’s “head.” In late April, bullish momentum returned. Green candles emerged consistently, forming the right shoulder through May and June.
Bitcoin then broke above the neckline near $110,000. The breakout confirmed the technical setup, supported by continued buying activity. Moreover, the breakout suggests further upside based on the pattern’s measured move. Traders now watch for sustained closes above the neckline.
