While the fluctuations in the Bitcoin price are increasing, behind the fell pressure on the market, large investors (whales) have increased short positions.
How do sales of Bitcoin whales affect the market?
Whales in the crypto market are actors that significantly guide the price movements with large volume operations. Especially in Bitcoin (BTC), whales, which take short positions, increase sales pressure and cause prices to move even downwards.
- Short Selling includes sales of investors, believing that the price of Bitcoin will decrease.
- This sales pressure creates fear among small investors and causes sales to accelerate.
- As a result, market fluctuations grow and decreases are felt more harsh.
Whale positions and market sensitivity
Whale Position Sentiment, which is a technical indicator, analyzes the effect of whales on the market by combining large operations over $ 1 million, cumulative volume balance (CVD), open positions (OI) and long/short rates over $ 1 million.
- Between 12-19 January, this indicator fell from 0.9 to 0.5, and in the same period Bitcoin fell from $ 105,000 to $ 95,000.
- On January 5, sensitivity was over 0.8, but it only led to a short -term recovery.
- The indicator is currently at the level of 0.4, that is, the confidence of whales is quite low and Bitcoin is forced to maintain $ 90,000.
What should be expected in the price of Bitcoin after the sales of whales?
The high position of whales in a high amount of short positions creates a panic effect on the market. Small investors follow these movements and turn to sale and the pressure on Bitcoin is increasing.
However, the advantage of this is that it leads to Short Squeeze (short position jam) throughout the market. If a sudden rise in the market is experienced, whales are forced to close the short positions they have opened. This may cause a harsh price splashing in Bitcoin.
What does BTC price need to rise in February 2025?
In the short term, the expectation of falls of whales may cause downward pressure on Bitcoin.
However, factors such as exchange in the US Federal Reserve (FED) policies or large corporate Bitcoin investments can reversed the trend. If whales start to close their short positions, this can allow a new wave of rise in Bitcoin.
