- James Wynn shifts from bullish to bearish by shorting 1,038 BTC with $111.8 million at 40x leverage after closing a $1.2B long.
- Bitcoin drops 4.5% from a recent all-time high, prompting Wynn to anticipate a near-term correction amid weakening technical indicators.
- A combination of technical analysis and macroeconomic pressure signals Wynn’s conviction that Bitcoin may not hold above the $107,000 level.
High-risk cryptocurrency trader James Wynn has reversed his market stance by opening a $111.8 million short position against Bitcoin. This move came just hours after closing a $1.2 billion long position that previously signaled bullish confidence. Wynn’s short targets 1,038 BTC and uses 40x leverage, with a liquidation point at $149,100.
Bitcoin is currently trading just under $107,000 after hitting a new all-time high. The asset has fallen nearly 4.5% since that peak. Wynn’s position appears to reflect expectations of a short-term correction following this rally. The decision marks a significant change from his earlier prediction that Bitcoin could rise to $121,000 within days.
Technical Analysis Supports Bearish Sentiment
Wynn cited technical indicators as the basis for his bearish turn. He pointed to low trading volume, a soft 4-hour RSI, and a declining 50-day moving average as signs of weakening momentum. On X, he challenged other traders to present a bullish case within the next 48 hours that could disprove his short thesis.
Macroeconomic factors also seem to have influenced Wynn’s position. Market volatility increased following recent U.S. tariff announcements, leading to a 4 percent drop in Bitcoin’s price. This shift caused over $700 million in liquidations across leveraged positions.
Market Eyes Wynn’s Next Move Amid Volatility
Wynn’s dramatic strategy change has sparked debate across crypto circles. Some observers believe the trader aims to trigger a long squeeze and reenter at lower levels. Others interpret the move as a signal of increasing market uncertainty. The size of the short position underscores Wynn’s confidence in a downward trend.
Bitcoin’s recent success has not put to rest worries over overbought conditions and cooling prices. As Bitcoin approaches $107,000, people are watching closely to evaluate if a deeper drop in its price is about to happen. Because of Wynn’s bet, people are watching the next move in Bitcoin’s price very closely.
