Bitcoin BTC Faces $110K Showdown as Trump Insider Bets $120M Short

Bitcoin steadied above $110K amid panic and rumors of a Trump insider’s $120M short. Analysts see the fear as a potential market bottom, not a new bear cycle.

Bitcoin BTC Holds $110K as Traders Brace for Another Shakeout

Bitcoin (BTC) traded just above the $110,000 mark on Oct. 16 as traders watched a critical support zone that could decide the next market direction. Market data showed BTC consolidating after last week’s “Trump Tariff Crash,” which erased nearly $500 billion from the crypto market.

Analyst Ted (@TedPillows) noted that Bitcoin had been consolidating above the $110,000 support zone, describing the level as the line between strength and another round of long liquidations. “As long as this holds, Bitcoin is still strong. If BTC loses this level, another wave of long liquidations will happen,” Ted wrote on X.

Charts shared by the analyst showed BTC moving within a narrow range between $110,000 and $117,000, with potential downside targets near $107,000 if the support broke. The market reaction came as traders positioned themselves ahead of a White House announcement scheduled for later in the day.

Trump Insider Short Adds to Market Anxiety

The bearish mood deepened after trader Wimar.X (@DefiWimar) claimed that a “Trump insider” had opened a $120 million Bitcoin short at $111,386, citing on-chain data. “His win rate is 100%,” the post read, showing a screenshot of the short position with an unrealized profit of over $648,000.

The claim gained traction after another commentator, OxNobler (@CryptoNobler), alleged that the same trader who profited from the earlier tariff crash had returned to short the market. According to him, the short coincided with a 3 p.m. White House announcement, similar to the timing of the last crash. “Should we expect another market crash today?” he asked in his post.

The timing led to renewed volatility fears, as traders recalled the sharp sell-off triggered by President Trump’s previous tariff remarks. While the “insider” claim lacked official confirmation, the speculation added pressure to already fragile sentiment.

Sentiment at “All-Time Low,” Says Ted

Ted compared the current setup to the COVID-19 crash in 2020, arguing that widespread fear could signal a market bottom rather than a top. “Sentiment is at an all-time low, people are panic selling and saying ‘it’s all over.’ This doesn’t happen at the top, but rather at the bottom,” he explained alongside a chart comparing the 2020 recovery with 2025’s price structure.

He suggested that the current conditions mirrored earlier phases of accumulation, when traders gave up positions before a longer-term rally. Bitcoin’s long-term chart, he noted, still showed an uptrend intact above the 100-day moving average.

Analysts Dismiss Talk of Major Bitcoin BTC Bear Market

Crypto analyst Michaël van de Poppe (@CryptoMichNL) echoed that view, dismissing fears of a deeper correction. “If we look at the monthly chart of Bitcoin, it’s fine. No peak, no bear market, no excessive vertical charts,” he wrote. “It’s just uptrending and there’s nothing to worry about at this point. Just buy the dip.”

His chart showed that BTC had maintained its long-term uptrend since late 2023, with consolidation phases forming above key moving averages. The analysis aimed to calm nerves amid growing concerns about political and macro-driven volatility.

Whales Flip Long as Volatility Looms

On-chain tracking account Lookonchain added a bullish twist, revealing that a large trader wallet, 0xc2a3, who made $5.5 million in profits over the past four days, had flipped from short to long. The trader reportedly opened a 5x long on 68 BTC ($7.6 million) and placed limit orders to go long on Ethereum (ETH) as well.

The same account previously opened a $140 million short on BTC, signaling that some whales might be rotating back to bullish bets after securing profits from recent declines. Lookonchain also confirmed the whale’s liquidation price at $137,700, suggesting a medium-term bullish expectation.

This change in positioning suggested that institutional players were taking advantage of the panic to reaccumulate at lower levels a pattern seen during previous macro-driven downturns.

Bitcoin BTC Support Key as Traders Await Trump Update

The immediate focus for traders remains the $110,000 support. A break below could trigger long liquidations and retest lower bands near $107,000. However, holding this level could revive momentum toward $117,000 and $122,000, as shown in Ted’s chart.

The renewed speculation around Trump’s announcement has kept traders on edge. Still, analysts like van de Poppe maintained that the broader trend remains bullish. “There’s no indication of a macro top. Bitcoin is consolidating in a healthy uptrend,” he reiterated.

With funding rates normalized and whales shifting direction, traders appear divided between short-term caution and long-term optimism. As Ted summarized, “This doesn’t happen at the top — it happens when everyone gives up.”