Whale Triggers $106K BTC Liquidity Squeeze with $255M Leveraged Long

Bitcoin (BTC) surged past the $106,000 mark on June 20, fueled by a high-stakes, high-leverage whale trade that jolted the market. The anonymous trader entered with a $255 million long position at 20× leverage, triggering a flurry of short liquidations and reshaping BTC’s short-term outlook.

Key Highlights

• Massive Whale Entry: A previously untracked whale opened a $255 million leveraged long position around the $104,000 level, injecting significant volatility into the market.

• Market Reaction: The BTC/USD pair responded with a sharp 1.7% spike, reaching $106,500 as cascading liquidations of short positions added fuel to the upward move.

• Intent Remains Unclear: The motives behind this move remain speculative, though the strategy mirrors recent aggressive trades by notable market participants like Hyperliquid’s James Wynn.

Is This the Breakout Traders Have Been Waiting For?

BTC/USD 1-hour chart. Source: TradingView

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With Bitcoin now hovering in a tightly contested range, traders are closely monitoring several key levels:

• $100K–$110K Range: This zone has emerged as the defining battleground for June. A decisive move beyond either boundary could set the tone for the next trend.

• $104,500 Support: This level is critical. Holding above it will be necessary for the bulls to maintain momentum and avoid a reversion to $100K.

Leading analysts like Daan Crypto Trades have pointed to market indecision within this band. While liquidity zones are clearly mapped, trader reactions to these levels will dictate near-term movement. Similarly, Crypto Tony emphasized the importance of a weekly close above $104,500 to confirm short-term strength.

BTC liquidation heatmap (screenshot). Source: CoinGlass

Whale Behavior & Market Signals

The recent $255M leveraged long isn’t an isolated case. Instead, it reflects a broader shift in whale behavior and on-chain dynamics this month:

• Whales Are Accumulating: According to IntoTheBlock, large BTC inflows surged by 254%, indicating aggressive accumulation just above the $106K mark.

• On-Chain Metrics Signal Caution: The Network Value to Transactions (NVT) ratio rose over 55%, implying that Bitcoin’s market value is beginning to outpace its underlying transactional utility — often a signal of overvaluation and potential correction.

• Momentum Slowing: Technical indicators like the MACD and RSI divergence suggest that current price action may be losing steam near resistance levels. These signals align with previous exhaustion patterns, warranting caution.

BTC/USDT 15-minute chart. Source: Daan Crypto Trades/X

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What Traders Should Watch

Traders and investors should keep a close eye on these critical indicators:

• $104,500 Support – This must hold to sustain bullish momentum. A breakdown could lead to broader market weakness.

• $106K–$108K Resistance – A breakout above this zone would likely trigger a fresh rally and test new highs.

• NVT & RSI Divergence – These suggest a possible short-term correction or at least reduced momentum.

• Whale Positioning – Continued accumulation by large players could validate the recent breakout and lead to sustained upside.

BTC/USDT perpetual contract 1-week chart. Source: Crypto Tony/X

Bottom Line

The $255 million whale-driven leveraged long created a sharp move that pushed BTC through $106,000, hinting at a potential breakout. However, caution persists. The rising NVT, bearish divergences, and critical support levels like $104,500 underscore the fragile nature of this momentum.

For bulls, maintaining price above $104.5K and pushing decisively beyond $108K will be crucial to ignite the next leg up. Conversely, failure to hold support could send BTC back toward the $100K zone—testing the strength and confidence of recent whale buyers.

Traders should stay alert, manage risk, and closely watch on-chain flows for confirmation of the next major move.