Since losing the $70k support level, Bitcoin’s [$BTC] downward momentum has intensified, with the price falling to a four-month low of $61,309.
At press time, Bitcoin had made a slight rebound, trading at $63,306, but was still down 4.7% on the daily charts. With $BTC falling to February lows, the derivatives market is heating up, with whales restrategizing.
Bitcoin whale takes $3.5 million profit
As Bitcoin declined, shorts turned profitable, and demand for the same surged. According to On-chain Lens, whale “pension-usdt.eth” completely closed his 1400 $BTC short position worth $93.8 million.
After the trade, the whale with a 21-winning streak took $3.56 million in profit. After the exit, the whale rotated to ETH. The rising profit for shorts suggests that downward momentum is strong, with sellers in control.
Coupled with that, traders have continued to open more short positions. In fact, Bitcoin’s Long/Short Ratio fell to 0.94.
The ratio at this level suggested that most participants were bearish and took short positions, anticipating further slip.
Longs count losses as liquidation hit $634 million
While whales who took shorts have seen their profits jump, the ones who went long have suffered massive losses.
According to Onchain Lens, Garret Jin’s longs are now in heavy losses. Garrett Jin’s $BTC (5x) long position is now incurring a floating loss of over $17 million.
Despite the rising losses, Jin still holds his position and has spent $153k in funding to avoid liquidation.
In fact, a significant number of long positions have been liquidated over the past 24 hours. CoinGlass data showed that Bitcoin’s total liquidation volume rose to $752 million, with $634.6 million in long positions liquidated.
Can $BTC hold the pressure?
Bitcoin’s downward momentum has continued to strengthen amid rising selling pressure driven by elevated liquidation levels.
In fact, the crypto’s negative momentum of the ADX with SMA rose to a new high of 47. At the same time, the ADX rose to 38 while the positive index fell to 6.
When the momentum indicators are set in this manner, it suggests that downside pressure is strong. Often, the setup signals a continuation of the trend.
Therefore, if the prevailing market conditions persist, Bitcoin could breach $60k and fall towards $58,600. To avoid further market slippage, $BTC must reclaim $70k and close above $74k.
Final Summary
- Bitcoin whale closed a $98 million worth of short position, taking $3.5 million profit as $BTC fell to February levels.
- Garret Jin’s long position sits at a $17 million floating loss, while liquidated longs rose to $634 million.
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