‘Whales Entered Bitcoin Short at $88,000,’ Analysis Company Says, Explains Its Meaning

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Cryptocurrency analytics firm Alphractal has published a new Bitcoin assessment that reveals a significant change in whale trading behavior.

According to the report, large-scale investors entered short positions when Bitcoin reached $88,000, signaling potential downward pressure on the asset.

Alphractal’s analysis is based on its metric “Whale Position Sentiment,” which evaluates the relationship between aggregated Open Interest and large trades exceeding $1 million across multiple exchanges. Whale Position Sentiment, which decreases even during temporary price increases, indicates that large investors are preparing for a price drop. Conversely, when this metric increases, it indicates that whales are taking long positions, typically pushing Bitcoin’s price higher.

Despite this bearish signal, Alphractal also noted Bitcoin’s underlying strength, with the network’s difficulty remaining nearly six times higher than in 2021 and the hash rate remaining at high levels. This suggests continued confidence from miners and strengthens Bitcoin’s resilience to changing market sentiment.

*This is not investment advice.

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