Over $1.7 billion worth of BTC has been sold on exchanges: Wall Street is selling, when to close short positions?

Volatility in the cryptocurrency market is reaching new highs. Just in the past week, major institutional players have sold astronomical volumes of Bitcoin through ETF funds, signaling significant corrections in the market. Against the backdrop of the Federal Reserve meeting, Wall Street is beginning to actively hedge, and investors holding short positions face a critical decision: when exactly to close their positions to lock in profits?

ETF sold in massive volumes — Wall Street prepares for shocks

In recent days, Bitcoin ETFs have experienced continuous capital outflows. Charts clearly show that large players have sold positions at high levels, preparing for a possible negative scenario next week. This activity indicates that Wall Street is retreating and hedging against potential macroeconomic surprises.

Currently, BTC is trading at around $67.87K, with a 24-hour change of -7.07%, demonstrating pressure on the price. The correction is ongoing, and the question now is not whether there will be a sell-off, but at what level it will stop.

Short position closing strategy: a two-step approach

After selling at higher levels (around 98,000), it’s time to consider a tactic of partial profit-taking. The technical support level near 87-88 thousand is a critical zone where BTC has previously shown rebounds. Here is the recommended action plan:

Stage 1 — Partial position closing:
As the price approaches the support at 87-88 thousand, it is advisable to close about 30-40% of the short position. This will lock in a significant portion of profits and allow monitoring whether this critical support line holds. If a rebound occurs, there is an opportunity to re-enter for a sale near the local resistance at 91.2 thousand.

Stage 2 — Holding positions until the meeting:
The remaining volume should be held until the Federal Reserve meeting (scheduled for next week), as this event could produce decisive macroeconomic signals. The optimal scenario is a breakdown below support at 87.3 thousand, which could trigger a stronger correction with larger potential profits.

Development scenarios and risk management before the meeting

The market faces two main scenarios:

If support at 87-88 thousand cannot withstand the pressure, a more significant decline can be expected, bringing substantial profits to short holders. However, even if this level holds, the profits already realized from earlier sales allow for a successful tactical approach.

The key rule — avoid greed after some profits have already been secured. The Federal Reserve meeting next week could change market sentiment in any direction, so strict discipline in capital management remains absolutely necessary.

Conclusion: Transition from aggressive selling to cautious closing

If weeks ago investors indisputably sold at around 98 thousand, now, as panic begins to spread, it’s time to gradually exit positions while being aware of the scale. In a market where over a billion dollars in ETF volumes have already been sold, the best decision is not to maximize risk but to control it. The two-step closing scheme allows most profits to be preserved in case of potential positive reversals.