Bitcoin Trader: Closes $56M Short with $1.94M Loss

A savvy Bitcoin trader known as 0x004e just closed a massive 700 BTC ($56.68 million) short position one hour ago, swallowing a brutal $1.94 million loss. This single misfire wiped out all profits from his previous 11 winning BTC shorts, which netted $1.71 million total. Wallet address: 0x004edcd40360e293e4cf260d2ebdf8c7076c1bb8. Traders chasing BTC price prediction plays often face such reversals, echoing historical Bitcoin short squeezes where rallies like the recent 5.7% jump to $74,679 liquidated $540 million in shorts. This underscores crypto trading risks in volatile markets, especially with trending assets like TAO and Bitcoin drawing massive leverage.

On the 4-hour chart, BTC commands a bullish structure with price blasting through the EMA50 at $78,253.87 and holding well above the EMA200 support at $74,997.53, signaling institutional buyers defending these levels as concrete floors. Momentum builds as MACD flashes a golden cross at 790.72, pushing RSI to 67.21 in neutral territory—watch for overbought signals if it spikes higher. Volatility squeezes inside the Bollinger Bands, with price hugging the upper resistance at $80,970.39 while lower support at $77,275.56 acts as a retracement magnet; confluence here suggests a quick dip to test that EMA50 before resuming the grind toward fresh highs, much like past squeezes that trapped shorts in rapid upswings.