Excitement has swelled within the crypto community following Bitcoin‘s recent upward move to key resistance levels. While the move can have sparked optimism, many investors’ reactions toward BTC were negative as they continued to bet on a sustained decline, making a bearish outlook for the asset.
Whale Shorting Activity On The Rise
As Bitcoin’s price struggles to interrupt through key resistance levels, a worrying shift has been cited amongst big investors or whales. Alphractal, a complicated investment and on-chain data platform reveals rising pessimism amongst these investors as they bet on an extension of the continued correction.
BTC recently saw a transient surge to the $87,000 level at the same time as volatility grows within the broader crypto market. Nevertheless, the upward move was met with strong resistance as whale holders massively opened short positions after the upswing. “Whales Enter Short Positions on Bitcoin as Leverage Increases,” the platform stated.
Despite the transient move to the $87,000 mark, these big investors have chosen to shut their long positions and open more shorts. Given the continued volatility of the market, this shift has raised questions on BTC’s prospects within the short term.
Whale participation often influences price trajectory, which could cause Bitcoin to proceed dropping within the upcoming weeks. Nevertheless, if buying pressure intensifies at critical support zones and creates a robust defense, BTC may move in an upward direction.
Moreover, Alphractal points to an increase in market leverage. After examining the Bitcoin Aggregated Open Interest/Market Cap Ratio, the platform noted that the metric is rising again, reflecting growing leverage. In accordance with the platform, this increase in market leverage might set off a fresh round of volatility, leading to further mass liquidations.
On-chain data have also revealed substantial sell pressure amongst Bitcoin large investors, triggering concerns about potential downside risks. Leading market intelligence and data analytics platform IntoTheBlock, outlined a decrease in whale balances because the market fluctuates.
the chart, BTC whales appear to have been trending downward for nearly a 12 months. Nevertheless, data from March suggests a possible reversal as whales now hold about 62,000 more BTC than they did in the beginning of the month, signaling renewed accumulation.
BTC’s Price Trading Inside Key Chart Pattern
The renewed accumulation by BTC whales raises the likelihood of a price reversal from the continued downtrend. This price reversal might be part of a bigger trend as Captain Faibik, a crypto analyst and investor predicts an impending surge to its current all-time high. His prediction is supported by a key chart pattern, particularly the Falling Wedge formation.
Captain Faibik believes that BTC could consolidate inside the key pattern for the subsequent 10 to fifteen days before undergoing an enormous bullish breakout. When this breakout happens, Bitcoin’s price will rally significantly to the $109,000 mark, reigniting the bull market.
Featured image from Unsplash, chart from Tradingview.com
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