After falling to a low of $76,000, Bitcoin recovered to $78,180 before rebounding somewhat. At the time of writing, BTC was trading at $77,886, up 0.96% on the day.
As BTC tries to recover, big traders appeared to increase their long positions.
Why are whales turning bullish again?
Look at chain reported that whale Garrett Jin returned to the market and opened a Bitcoin [BTC] long position.
Garrett Jin deposited $39.5 million into Binance, withdrew $40 million from Binance and deposited another $10 million into Hyperliquid. The whale then opened a 5x long position on 504.4 BTC worth $59.11 million. The liquidation level was $62,656.49.
The move followed Garrett Jin’s earlier exit from the market after closing previous positions. That return indicated improving market sentiment.
However, the whale’s movement did not happen in isolation.
Are traders taking more long positions?
Buyers also seemed to be returning to the derivatives market. Bitcoin’s Taker Buy/Sell ratio recovered from negative territory and climbed to a weekly high of 1.1.
A positive ratio suggested that buyers were aggressively opening new positions in the market.
This shift corresponded with stronger capital inflows into BTC futures. CoinGlass data shows that future inflows reached $10.64 billion.
Meanwhile, Futures Outflows fell to $10.42 billion, leaving Futures Netflow at a positive $219 million. The data suggested that traders were increasing their exposure to BTC derivatives positions.
Furthermore, Bitcoin’s Long/Short Ratio climbed back above 1. The metric reached a total of 1.02 and averaged 1.2 for Binance and OKX.
A ratio above 1 suggested that most traders were bullish and expected further upside.
Is the shift in sentiment enough for BTC?
Despite the improving sentiment, Bitcoin’s broader structure remained weak at the time of writing. In fact, the Daily Relative Strength Index (RSI) remained below 50 at 49. Meanwhile, the signal line stood at 54.
That setup suggested bears still retained market control.
Yet, BTC also traded below the short-term 9-day and 21-day moving averages of $78,000 and $79,000, respectively. These momentum indicators suggested that demand remained too weak to support a stronger breakout.
To strengthen bullish momentum, BTC would need a clean daily close above the 21-day MA near $79,407. That could open the way to recovering $80,000.
Failure to regain that level, on the other hand, could lead to long liquidations and drag BTC back to $76,000.
Final summary
- Bitcoin whales aggressively reopened long positions as BTC recovered from the $76,000 support zone.
- Positive futures Netflow showed new capital entering Bitcoin derivatives positions rather than exiting the market.