Amid the broader market decline, Bitcoin’s bearish streak extended, falling to a six-week low of $72,728. At the time of writing, Bitcoin was trading at $73,376, down 3.2% on the daily charts, adding to the weekly decline of 5%.
With the market on its hind legs, investors, especially the derivatives whales, were forced to reposition themselves.
Garret Jin adds Bitcoin long to $94 million
Despite the market’s sharp decline, some whales have remained optimistic and have aggressively pushed for a recovery. According to Look at chainpopular whale Garret Jin entered the market to hedge his long position amid liquidation risk.
Garret Jin increased his long position to 1268 BTC worth $94.4 million. The market decline has caused the whale to fall by $2.08 million.
Garret continued to add to long positions to avoid liquidation amid intense long liquidations. According to CoinGlass data, the total number of liquidated longs rose to $348 million, with total liquidations reaching $366 million.
Bitcoin derivatives remain bearish
Bitcoin [BTC] Whales have remained extremely active in the Futures market. CryptoQuant’s Futures Average Order Size data shows that large whale orders still dominate the market.
This implies that whales remain extremely active in the derivatives market, but their order volume has decreased significantly.
As the market weakens, these whales have begun to reduce their exposure. Derivatives Buy Sell Ratio fell to a two-week low of 0.9.
A ratio lower than 1 indicates that sellers are dominant on the futures side. When sellers dominate derivatives during a market correction, it signals a sense of risk, with traders fearing liquidations.
Is the $70,000 support in jeopardy?
Bitcoin’s downward momentum continued to strengthen, largely due to the sustained pressure over the past day. In fact, the negative index (-DI) rose to a monthly high of 29.
At the same time, the positive index fell to 12, while the ADX was around 14. With ADX and -DI above +DI, this suggests that the downtrend is extremely strong.
Historically, when this momentum indicator is set this way, it indicates a greater chance of the trend continuing. Therefore, Bitcoin could fall to $70,500 if the pressure continues and the futures whales show a sense of risk.
However, if the market cools and the excess debt load is wiped out, BTC could see a healthy reset. Doing so could allow the market to rebound above $75,000, paving the way for a clear recovery.
Final summary
- Bitcoin whale Garret Jin increased his long position to 1,268 BTC, worth $94.4 million, while long liquidations reached $348 million.
- BTC fell to a monthly low of $72,000 as investor sentiment turned away from risk.