Analytics Firm Reveals Critical Level Bitcoin Needs to Hold For Bullish Sentiment to Continue
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.
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 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.
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.
According to the analyst firm, 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. Over the past 90 days, there have been unliquidated positions in the $67,000 and $71,000 areas, while a much larger liquidation pool is found below $40,000 when analyzed on a one-year basis.
*This is not investment advice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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