Bitcoin’s volatility slowed significantly in both directions. This established $63,000 as support and $65,000 as key resistance.
With Bitcoin [$BTC] trading inside this narrow range, some investors positioned for a deeper breakdown.
Why are Bitcoin whales betting lower?
CryptoQuant’s Futures Average Order Size showed whale-sized orders returning after more than a month.
The metric confirmed that larger traders had returned to the Futures market. However, it did not reveal their directional positions.
On top of that, the Derivatives Taker Buy/Sell Ratio remained above 1 for two consecutive days. This meant taker-buy volume exceeded taker-sell volume during that period.
Therefore, the broader derivatives data did not support claims that most traders were shorting Bitcoin.
However, two individual whales had placed substantial bearish bets.
Lookonchain reported that one trader continued expanding his short position. The position reached 2,136 $BTC, worth $136 million. Lookonchain described the trader as the largest on-chain Bitcoin bear.
Meanwhile, another whale had lost around $978,000 after reducing his position three times this week, according to Eyeonchain.
Even so, the whale returned and added 269.35 $BTC. His short position reached approximately 1,412 $BTC, worth $89.79 million.
Together, both whales held nearly $226 million in bearish exposure. Their shorts added selling pressure while the positions remained open.
However, closing or liquidating those shorts could create buying demand later.
Can Bitcoin break above $65K?
Despite these bearish whale positions, Bitcoin continued holding the $63,000 support.
The Momentum Shift indicator remained positive at 4,245.91. This suggested that upside momentum had survived the latest retracement.
However, Bitcoin traded below the chart’s MaMA band. The band’s nearest displayed levels stood around $64,649 and $65,454. This kept $BTC beneath an important technical resistance zone.
These conflicting signals could leave Bitcoin ranging between $63,000 and $65,000.
A move below $63,000 could favor the two whale shorts. Meanwhile, a decisive $65,000 breakout could force short covering. That buying could then accelerate Bitcoin’s move beyond the current range.
Final Summary
- Two Bitcoin whales held nearly $226 million in short positions, signaling strong individual bearish conviction.
- Broader derivatives activity was mixed, as taker-buy volume exceeded taker-sell volume for two consecutive days.
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