Since losing the $70,000 support level, Bitcoin’s [BTC] Downside momentum has increased, with the price falling to a four-month low of $61,309.
At the time of writing, Bitcoin had made a slight rebound and was trading at $63,306, but was still down 4.7% on the daily charts. Now that BTC has fallen to February lows, the derivatives market is heating up and restrategizing for whales.
Bitcoin whale makes $3.5 million profit
When Bitcoin fell, shorts became profitable and demand for the same increased. According to Lens with chainwhale “pension-usdt.eth” completely closed its short position on 1400 BTC worth $93.8 million.
After the transaction, the whale achieved $3.56 million in profits with a winning streak of 21. After the exit, the whale turned to ETH. The rising gains for shorts indicate that downside momentum is strong, with sellers in control.
Coupled with this, traders have continued to open more short positions. In fact, Bitcoin’s Long/Short ratio fell to 0.94.
The ratio at this level suggested that most participants were bearish and were taking short positions in anticipation of a further decline.
Longs count losses when liquidation was $634 million
While whales who went short saw their profits soar, those who went long suffered huge losses.
According to Onchain lensGarret Jin’s longs are now taking heavy losses. Garrett Jin’s long position in BTC (5x) is now at a floating loss of over $17 million.
Despite mounting losses, Jin still holds his position and has spent $153,000 in financing to avoid liquidation.
In fact, a significant number of long positions have been liquidated in the last 24 hours. CoinGlass data showed that Bitcoin’s total liquidation volume rose to $752 million, with $634.6 million in long positions liquidated.
Can BTC maintain the pressure?
Bitcoin’s downward momentum has continued to strengthen, amid rising selling pressure due to increased liquidation levels.
In fact, the crypto’s negative momentum rose from the ADX with SMA to a new high of 47. At the same time, the ADX rose to 38, while the positive index fell to 6.
When momentum indicators are identified in this way, it indicates that downward pressure is strong. Often the design indicates a continuation of the trend.
Therefore, if prevailing market conditions persist, Bitcoin could break the $60,000 mark and drop towards $58,600. To avoid further market derailment, BTC must recover $70,000 and close above $74,000.
Final summary
- Bitcoin Whale closed a $98 million short position position, $3.5 million profit taken as BTC fell to February levels.
- Garret Jin’s long position is at a floating loss of $17 million, while liquidated long positions rose to $634 million.