Bitcoin’s prolonged sideways trend leaves many traders uncertain about which way the cryptocurrency will eventually go. While some market participants expect the recent pullback to give way to a renewed rally, others argue that Bitcoin may need to fall further before establishing a lasting bottom.
According to Ted Pillows, “moonboys” will soon claim that Bitcoin has cleared all downside liquidity and is ready to surge to new highs. However, he believes a large liquidity cluster remains between $55,000 and $65,000, suggesting Bitcoin has not yet reached its bottom.
While Pillows did not rule out a short-term bounce from current levels, he identified the $70,000 region as a crucial support zone. For context, Bitcoin traded at $69,368 at the time of writing, according to TradingView’s data. However, Pillows believes Bitcoin could decline further before establishing a bottom and reversing higher.
(adsbygoogle = window.adsbygoogle || []).push({});In the meantime, data from Arkham Intelligence reveals that a Bitcoin whale recently broke even on his $100 million short position. According to the analytics platform, the trader has been shorting $100 million worth of Bitcoin for the past two months. He shorted $97 million in BTC at an average price of $69,420. The trader recorded an unrealized loss of $18 million when Bitcoin rallied to $82,833 at the beginning of May, but has now broken even.
Such a level of confidence, holding through an $18 million unrealized loss under the current market conditions, suggests the trader’s belief that BTC may slip lower. Most Bitcoin traders who uphold this belief target the lower boundary of Bitcoin’s horizontal range, which settles around the $65,000 price level.
Notably, dropping below $65,000 will open the way for Bitcoin to retest its 2026 low around $60,000. However, many long-term investors continue to view any additional weakness as part of a broader bull market cycle, expecting Bitcoin to resume its upward trend once the current correction runs its course.
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