Bitcoin came under renewed pressure in early May 2026, as a combination of geopolitical tensions linked to the US-Iran conflict and low trading volumes weighed on market sentiment. The leading cryptocurrency had previously dropped near the $60,000 level earlier in the year before staging a recovery of approximately 25%. However, the upward momentum has stalled, leaving BTC trapped between a resistance level of $81,000 and support at $73,000.
Adding a layer of intrigue and market speculation, an insider linked to former President Donald Trump reportedly opened a massive short position against Bitcoin. According to crypto analyst Crypto Rover, a $23.5 million BTC short was placed just minutes before the U.S. market closed. This development has fueled speculation about potential market manipulation and heightened bearish sentiment among traders.
In a separate trade, a well-known trader identified as Astronomer detailed a successful Bitcoin short that was opened on Friday and has now been moved to a risk-free position. The trader closed over half of the trade after a stall near the top of a local trading range, securing profits. The remaining short now has a stop-loss in place to protect against adverse moves, with a primary target set near the $75,000 level. This area is described as having significant long liquidity, which could act as a magnet for price action as traders are forced to exit their positions.
Astronomer emphasized that the short was a tactical, countertrend hedge rather than a full-fledged bearish call on Bitcoin. The trader's broader bias remains bullish, and the short was used to protect existing long positions. The strategy is focused on careful risk management and has a clear time limit, as the trader expects weekend highs to potentially be retaken next week.
At the time of reporting, BTC/USD was trading near $78,396 on the daily chart, close to the crucial 0.786 Fibonacci retracement level at $78,309. Holding this support is critical for short-term direction. A break below could open the door to the $75,000 liquidity zone and potentially lower levels around $70,000 to $67,000. Conversely, a daily close above the next resistance at $86,966 could weaken the bearish thesis. Momentum indicators like the MACD remain positive, and the RSI is near 60, suggesting that buyer strength is still present but waning.
