Bitcoin Faces Potential Pullback as Whale Activity Increases

According to Cointelegraph, Bitcoin traders have shown optimism as the cryptocurrency's price surged to the $88,000 mark. However, the inability to surpass this level in the short term might signal a take-profit opportunity. Alphractal, a crypto analytics platform, observed that significant Bitcoin holders, known as whales, have initiated short positions at this price point. In a recent post on X, Alphractal highlighted a notable shift in the 'Whale Position Sentiment' metric, suggesting that major market players with a bearish outlook are influencing the market. This metric assesses the relationship between aggregated open interest and trades exceeding $1 million across various exchanges. Alphractal's CEO, Joao Wedson, confirmed that whales have closed their long positions, historically aligning price movements with their market bias. CryptoQuant's data further supports this bearish sentiment, with 8 out of 10 onchain signals indicating a potential downturn, except for stablecoin liquidity and technical signal indicators. Last week, CryptoQuant's CEO, Ki Young Ju, warned of a possible bear market, advising investors to brace for 6-12 months of bearish or sideways price action. Despite these indicators, some investors remain confident in Bitcoin's prospects. Data from IntoTheBlock revealed net Bitcoin outflows of $220 million from exchanges in the past 24 hours, totaling $424 million between March 18 and March 24. This trend suggests that certain holders are accumulating Bitcoin, even as onchain metrics flash red. On a lower time frame chart, Bitcoin reached an intraday high of $88,752 on March 24 but has not established a new high since. The cryptocurrency is currently moving within an ascending channel pattern, facing resistance from the upper range and the 50-day and 100-day exponential moving averages on the daily chart. For Bitcoin to continue its rally towards $100,000, it must close above the $90,000 mark, especially with whales potentially shorting between $88,000 and $90,000. This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any financial decisions.