- On-chain investigator ZachXBT has pinpointed the whale who shorted Bitcoin using 40x leverage on Hyperliquid.
- The trader closed out a short position worth $332 million, netting more than $9 million despite concerted efforts aimed at liquidation.
- On Tuesday, Bitcoin’s price dipped by 3%, reaching a weekly low of approximately $81,160.
The price of Bitcoin fell 3% on Tuesday as an on-chain analyst revealed the identity of a whale who shorted BTC at high leverage, yielding millions even in the face of liquidation attempts.
Bitcoin short whale revealed as cybercriminal utilizing stolen assets
The on-chain analyst asserted that the crypto whale who executed a substantial short trade on Bitcoin is a cybercriminal utilizing “stolen resources.”
This trader closed a 40x leveraged short position, gaining over $9 million in profit despite attempts to force liquidation.
According to data, the whale initiated a 3,940 BTC short position at $84,040 on Saturday, amounting to $332 million, with a liquidation price of $85,300.
A pseudonymous trader known as CBB spearheaded efforts to push Bitcoin’s price above this level, temporarily reaching $84,690. In response, the whale added $5 million in USDC to bolster their margin, evading liquidation.
Despite sustained pressure, the whale broadened the short position and exited on Tuesday with a substantial profit.
While the investigator confirmed the trader’s connection to cybercrime, no additional identifying details were provided.
Furthermore, the investigator clarified that this individual has no links to North Korea’s Lazarus Group, previously associated with high-profile crypto hacks, including the recent incident at Bybit exchange.
Bitcoin price outlook: $80,000 support wobbles ahead of Federal Reserve’s rate decision
Currently, Bitcoin’s price is at $81,865 after a 2.55% drop on Tuesday.
Technical analysis indicates that BTC risks breaching the $80,000 support level as selling pressure increases ahead of the U.S. Federal Reserve’s rate decision scheduled for Wednesday.
As illustrated, BTC is confined within the Keltner Channel, with upper resistance at $93,756 and lower support at $77,139.
The midline at $85,447 is acting as resistance, keeping BTC in a bearish trend.
The negative sentiment is reinforced by BTC’s inability to reclaim the $85,000 level following multiple attempts this week.
If sellers manage to push BTC below $80,000, this breakdown could pave the way for further declines towards $77,000 if selling pressure escalates following the Fed’s announcement.
However, if BTC maintains its position above $80,000 and reclaims the midline at $85,447, it may signal a shift away from near-term bearish pressures and open the possibility for a breakout towards $90,000.
The Accumulation/Distribution Line (ADL) currently remains stable at 1,593, reflecting neutral capital inflows.
A rise in ADL alongside price recovery could signal a resurgence of bullish momentum.
Until then, BTC remains susceptible to macroeconomic uncertainties, with the next significant movement hinging on the forthcoming Fed rate decision.