Cryptocurrency analytics firm Alphractal has published a new assessment of Bitcoin, highlighting a significant change in the trading behavior of large investors.
Change in Whale Trading Behavior
According to Alphractal's report, large-scale investors entered short positions when Bitcoin reached $88,000, indicating potential downward pressure on the asset.
Whale Position Sentiment Metric
Alphractal’s analysis is based on its "Whale Position Sentiment" metric, which evaluates the relationship between aggregated Open Interest and large trades exceeding $1 million across multiple exchanges. This metric decreases even during temporary price increases, indicating that large investors are preparing for a price drop. Conversely, when this metric increases, it indicates that whales are taking long positions, typically pushing Bitcoin’s price higher.
Bitcoin’s Strength and Miners' Confidence
Despite the bearish signal, Alphractal also noted Bitcoin’s underlying strength, with the network’s difficulty remaining nearly six times higher than in 2021 and the hash rate remaining at high levels. This suggests continued confidence from miners and strengthens Bitcoin’s resilience to changing market sentiment.
Alphractal's analysis highlights a significant change in large investors' behavior in the Bitcoin market, but also shows the continuing confidence of miners, supporting market stability.
