Bitcointhe largest cryptocurrency asset has captured the attention of cryptocurrency enthusiasts as the coin shows upward momentum to reach the $66,000 level. Despite this newfound bullish strength, whale investors have resumed shorting Bitcoin, raising concerns about a possible price decline.
Are Bitcoin Whales Betting Against the Rally?
Alphractal, an advanced investment data analysis platform He pointed out Downtrend among Pisces BTC investors In recent research. The platform spotted the negative development after noticing Bitcoin’s whale position gauge.
Specifically, Bitcoin whale The position gauge saw a significant change, indicating that whales have started selling short again as the cryptocurrency surpasses the $64,800 price level. Although the market is trending generally positively, this recent spike in whale selling activity is indicative of a more cautious approach, which could put short-term pressure on the price of Bitcoin.
Bitcoin whale position Feelings The metric is a “strong indicator” that follows the trend of positions that whales are taking advantage of across many exchanges. A rise in this metric indicates an increase in long positions, while a decrease indicates an increase in short positions.
With one of the strongest correlations between this metric and price action, it is clear that whales are constantly dominating and controlling the market. Whale Position Sentiment, which is derived from the largest trades made 24 hours a day across all exchanges, combines this data with broader positions to provide a powerful sentiment oscillator.
Considering the development, the platform highlighted that Bitcoin needs to stay above the $62,200 level, which is the price achieved for the holder in the short term, as a break below this level will move the cryptocurrency assets into the bearish zone.
The largest pool of liquidity is still below $40,000
Alfractal too male In recent days, BTC traders have dominated short positions according to data from liquidation levels aggregated across multiple exchanges. This dominance of short positions has led to large liquidation pools above the current price.
At the moment, a large portion of short positions have already been sold as the price crossed $65,000. Moreover, the primary filter complex in short term It is now placed at $57,000.
While the development has resulted in significant liquidations, there are still positions in the areas of $67,000 to $71,000 that have not been liquidated in the past 90 days. However, analyzing from a one-year forecast, Alphractal has identified that the largest pool of liquidity lies below the $40,000 level.
Despite this surge in short positions, BTC is showing healthy price action, as it stabilizes above it $65,000 With an increase of more than 3% in the past day. In the larger perspective, such as the 1-week and 1-month time frames, the digital assets maintain an upward movement, rising by about 3.40% and 9.14%, respectively.
Featured image from Unsplash, chart from Tradingview.com
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