Bitcoin Must Hold Above This Level to Preserve Momentum, Analytics Firm Warns

A cryptocurrency analytics firm recently revealed that major investors, often referred to as whales, have begun shorting Bitcoin (BTC) again as its price approaches $67,000.

This development, highlighted by the firm’s Whale Position Sentiment indicator, signals a notable shift in market behavior, with whales continuing to significantly impact price trends.

The Whale Position Sentiment metric monitors leveraged positions held by whales across various exchanges. A decline in this indicator suggests an increase in short positions, while a rise indicates a trend towards long positions. Given the close link between whale activity and market fluctuations, such changes often reflect larger trends within the cryptocurrency sector.

The firm emphasizes that Bitcoin must maintain a value above $62,200, its Short-Term Conservative Realized Price, to avoid triggering bearish signals. Falling below this key level could suggest a resurgence of negative momentum in the market.

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Recent findings also indicate a large-scale liquidation of short positions as BTC surpasses the $65,000 mark. While the price rises, there remains a substantial liquidation pool at $57,000 in the short term. Over the last 90 days, positions around $67,000 and $71,000 have gone unliquidated, but a much more significant liquidation pool appears below $40,000 when viewed over a one-year timeframe.

Alexander Stefanov