Shorts Are Exploding On Bitcoin, Large Investors Are Taking Positions

As Bitcoin brushes against $85,000, a quiet tension stirs the markets. Behind this apparent resistance lies a paradoxical movement: “whales” are silently preparing their offensive. Their strategy? Massive bets on the downside, despite a technical rebound that would make optimists dream. A risky game, indicative of unprecedented distrust, but also of an invisible battle where every dollar counts. Strategy of the man.

Whales play with fire: the strategy of massive shorts

The recent rebound of Bitcoin to $87,000 has sparked a fleeting hope. Yet, data from Alphractal delineates another reality: big holders have taken advantage of this rise to lock in their gains… and open record short positions.

A brutal, almost cynical turnaround. As if these actors, accustomed to reversals, see in every ascent an opportunity for a fall.

This distrust is explained by a rising financial leverage, signaling an overheated Bitcoin market. The Aggregated Open Interest/Market Cap Ratio, a key indicator, is dangerously climbing.

Bets with leverage are multiplying, creating a powder keg ready to explode at the slightest shock. Cascade liquidations are looming, reminiscent of past crashes where excess confidence precipitated the falls.

But why are these seasoned investors defying the trend? Perhaps they anticipate a technical pullback after a consolidation that’s gone on too long. Or, are they fearing an unstable macroeconomic environment — stubborn inflation, geopolitical tensions? In any case, their massive movement weighs like a sword of Damocles over the prices.

Drop or rebound of Bitcoin: the duel of contradictory indicators

In the shadow of bearish bets, one signal intrigues: whale wallets have grown by 62,000 BTC since March. Discreet accumulation or mere repositioning? IntoTheBlock highlights this contradiction.

Some see it as a sign of long-term confidence, despite current turbulence. As if major players are already preparing for the post-crisis period, playing across multiple timelines.

Technical analyst Captain Faibik adds fuel to the fire of the optimists. His thesis? A “Falling Wedge” in formation, a chart pattern heralding an explosive rebound.

According to him, 10 to 15 days of consolidation would be enough to propel Bitcoin towards $109,000, shattering its ATH. An enticing scenario, but one that assumes a clear break from current resistance and, above all, a market capable of withstanding the manipulations of big holders.

A crucial question remains: who, algorithms or whales, will dictate the next trend? On-chain and technical indicators clash, creating unprecedented uncertainty. Small investors are navigating through murky waters, torn between the fear of missing the rebound and the dread of a bearish trap.

Bitcoin today embodies a fascinating duality. On one side, large investors, armed with their short positions, are betting on a collapse. On the other side, technical and on-chain signals suggest historical potential. This tension illustrates a market in search of bearings, where each actor shapes their own vision. On the institutional side, 83% intend to increase their exposure to cryptocurrencies.

Evans S.

Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.