Cryptocurrency analytics firm Alphractal reported in its latest analysis that large-scale investors, known as whales, have resumed shorting Bitcoin (BTC) as the price approaches $65,000.
Latest Data from Alphractal
According to the firm’s Whale Position Sentiment indicator, this shift marks a significant moment in market dynamics as whales continue to exert a strong influence on price action.
Whale Position Sentiment Indicator
Whale Position Sentiment is an indicator that tracks leveraged whale positions across multiple exchanges. A decrease in the metric indicates an increase in short positions, while an increase indicates a trend toward long positions. Given the strong correlation between whale activity and market movements, these shifts are often indicative of broader trends for cryptocurrencies.
Market Impact
Alphractal notes that Bitcoin needs to stay above its Short-Term Conservative Realized Price of $62,200 to avoid bearish signals. A drop below this critical threshold could signal renewed bearish momentum in the market.
Recent data also points to a large-scale liquidation of short positions as BTC surpasses $65,000. Despite the increase, a significant liquidation pool still appears in the short-term at $57,000.
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