BitcoinThe major cryptocurrency asset caught the attention of crypto enthusiasts as the coin showed bullish momentum to reach the $66,000 level. Despite this new upward momentum, whale investors have once again started shorting BTC, causing concerns about a possible price drop.
Are Bitcoin Whales Betting Against the Rally?
Alphractal, an advanced investment data analytics platform has he revealed bearish trend among whales BTC investors in a recent study. The platform saw a negative development after watching the Whale Position Sentiment metric for Bitcoin.
Specifically, Bitcoin A whale The Position Sentiment measure saw a major reversal, suggesting that whales have once again begun to bear down as the cryptocurrency broke through the $64,800 price level. While the market tends to trend positively, this recent surge in whale activity is indicative of a cautious approach, which could put short-term pressure on Bitcoin’s price.
Bitcoin whale position feeling The metric is a “potential indicator” that follows the direction of the positions whales find on several exchanges. An increase in this metric indicates an increase in long positions, while a decrease suggests an increase in short positions.
With one of the strongest correlations between this metric and price action, it can be seen that whales always rule and control the market. Whale sentiment, based on the largest trades made throughout the day or hour of every exchange, combines this data with broader areas to provide a powerful sentiment oscillator.
Considering the development, the platform emphasized that Bitcoin needs to stay above the level of $62,200, which is the Guaranteed Value of the Short-term Owner, since a break below this level will make the crypto asset turn into a bearish position.
Largest Liquidity Pool Remains Under $40,000
Alphractal too noted that in recent days, BTC traders have held short positions according to data from the aggregated levels of liquidation of many exchanges. This dominance from short positions has resulted in a large amount of liquidation above the current price.
Currently, most of the short positions have already been sold due to the price above $65,000. In addition, the initial liquidation pool in short term it is now set at $57,000.
Although the improvement has created significant liquidation, there are still positions in the $67,000 and $71,000 regions that have not been liquidated over the past 90 days. However, analyzing with a 1-year perspective, Alphractal found that the largest cash pool is found below the $40,000 level.
Despite this increase in short positions, BTC is showing healthy price action, holding above $65,000 with an increase of more than 3% on the previous day. On a larger view such as 1-week and 1-month time frames, the digital asset maintains an upward movement, rising by around 3.40% and 9.14% respectively.
Featured image from Unsplash, chart from Tradingview.com