Bear Trap Brewing: Bitcoin Shorts Pile Up Ahead of CPI Report
Bitcoin is facing a significant short position of $343 million, with four traders opening a combined short position of 5,379 BTC. This positioning has been observed by Lookonchain data and suggests that traders are expecting strong resistance around $66k.
The current technical setup for Bitcoin is one of consolidation, with the price having been stuck in the $65k range for over seven weeks. This marks the strongest weekly consolidation since Q4 2025.
However, despite this bearish sentiment, a breakout above resistance could set up a potential 'bear trap', where the shorts are squeezed out and the price surges higher. The upcoming CPI report on August 12th is expected to be a key catalyst for risk assets, with Bitcoin likely at the center of the reaction.