Bitcoin Whales Resume Short Positions Amid Bullish Positive Market

Bitcointhe largest cryptocurrency asset has captured the attention of crypto enthusiasts as the coin shows bullish momentum to reach the $66,000 level. Despite this newfound upside, whale investors have started shorting BTC again, raising concerns about a possible price drop.

Are Bitcoin Whales Betting on a Rally?

Alpharactal, an advanced investment data analysis platform, has pointed out a bearish trend among the whales investors of BTC in a recent study. The platform noticed the negative development after observing the Whale Position Sentiment metric for Bitcoin.

In particular Bitcoin Whale The Position Sentiment reading has shown a significant change, indicating that whales have started shorting again as the cryptocurrency surpasses the $64,800 price level. While the market is generally trending positively, this recent increase in whale discount activity is indicative of a more cautious approach, which could put pressure on Bitcoin’s price in the short term.

Bitcoin whale position sentiment The metric is a “powerful indicator” that tracks the direction of positions taken by whales on various exchanges. An increase in this measure indicates increased long positions, while a decrease indicates a spike in short positions.

With one of the strongest correlations between this metric and price action, it is clear that whales continually dominate and control the market. Whale position sentiment, which is derived from the largest intraday or hourly trades across all exchanges, combines this data with broader positions to provide a powerful sentiment oscillator.

Considering the development, the platform emphasized that Bitcoin should remain above the USD 62,200 level, which is the Short-Term Holder Realized Price, as a break below this level will push the crypto asset into bearish territory.

Largest liquidity pool remains below $40,000

Alphractal too noted that BTC traders have dominated short positions in recent days according to data from aggregated liquidation levels across multiple exchanges. This dominance from short positions has led to significant liquidation pools above the current price.

Currently, a significant portion of the short positions have already been sold as the price exceeds $65,000. Furthermore, the primary liquidation pool is in the short term is now positioned at $57,000.

While the development has led to significant liquidations, there are still positions in regions between $67,000 and $71,000 that have not been liquidated in the last 90 days. However, based on a 1-year outlook, Alphractal has determined that the largest liquidity pool is below the $40,000 level.

Despite this increase in short positions, BTC is showing healthy price action and staying above $65,000 with an increase of more than 3% in the past day. In the broader perspective, such as the 1-week and 1-month timeframe, the digital asset maintains an upward movement, rising around 3.40% and 9.14% respectively.

Featured image from Unsplash, chart from Tradingview.com