Cryptocurrency analysis firm Alphractal has released its latest market analysis, highlighting a resurgence of shorting activity by large whales as Bitcoin (BTC) approached the $65,000 mark.
Alphractal’s Whale Position Sentiment indicator, which tracks the direction of whale-leveraged positions across multiple exchanges, has shown a decline, suggesting a surge in short positions. This metric has a strong correlation with price action, demonstrating the significant influence of whales on the market.
According to the analysis, Bitcoin must maintain a price above $62,200, the Short-Term Holder Realized Price, to avoid a return to bearish territory. Falling below this level could signal a renewed downtrend.
Furthermore, Alphractal’s analysis of liquidation levels across various exchanges reveals that traders have predominantly held short positions in recent days, leading to significant liquidation pools above the current price. As the price surpassed $65,000, a portion of these positions have already been liquidated. However, a substantial liquidation pool remains at $57,000 in the short term.
Looking at a longer-term perspective, regions around $67,000 and $71,000 still contain positions that have yet to be liquidated. However, the largest liquidity pool is found below $40,000 when analyzing a one-year timeframe.
