Bitcoin is trying to recover from a cluster of short positions as market sentiment turns bearish. Speculative Ethereum traders now have the largest leveraged short position ever according to CME Group. Traders are de-risking ahead of the US Federal Reserve’s Jackson Hole symposium. BTC returned to $116,000 after Monday’s Wall Street open, sparking a short squeeze. Data shows that BTC/USD is recovering from overnight losses and liquidations of long positions amounting to $500 million in 24 hours. Popular traders predict Bitcoin will consolidate between $112,000 and $120,000 in Q3, with potential for a drop below $112,000. Michaël van de Poppe believes a failure to break $116,800 could signal the start of a bear market. Exchange order books suggest short-term price action is uncertain, with a focus on a cluster of ETH shorts. The largest leveraged short position in Ethereum’s history has been formed, raising the potential for a short squeeze. Trading firm QCP Capital attributes the market downturn to macroeconomic factors, particularly the upcoming Jackson Hole symposium and inflation concerns. Powell’s 2024 Jackson Hole speech contained insights that could impact future policy easing.

Read more at Cointelegraph: Bitcoin, Ether Target Late Shorts Amid Crypto Price Rebound