Bitcoin's downward momentum has intensified significantly, with the cryptocurrency falling to a four-month low of $61,309 after losing the crucial $70,000 support level. According to latest reports, Bitcoin has made a slight rebound to $63,306 but remains down 4.7% on daily charts. The derivatives market is heating up as whales engage in strategic positioning, with the Long/Short Ratio falling to 0.94, suggesting most participants are bearish and taking short positions. Bitcoin's negative momentum indicators have reached concerning levels, with the ADX with SMA rising to a new high of 47 and the ADX at 38 while the positive index fell to 6.
A significant whale has capitalized on Bitcoin's decline by closing a $98 million short position worth $93.8 million, taking $3.56 million in profit after a 21-winning streak. As reported by On-chain Lens, the whale rotated to ETH following the successful trade. This profit-taking activity comes as Bitcoin's downward momentum has intensified, with shorts turning profitable and demand for short positions surging. The rising profit for shorts suggests that downward momentum remains strong, with sellers maintaining control of the market direction.
While short positions have become profitable, long holders have suffered substantial losses. According to CoinGlass data, Bitcoin's total liquidation volume rose to $752 million, with $634.6 million in long positions liquidated over the past 24 hours. Notable among these losses is Garrett Jin's BTC (5x) long position, which is now incurring a floating loss of over $17 million. Despite rising losses, Jin continues to hold his position and has spent $153,000 in funding to avoid liquidation. This massive liquidation volume reflects the intense selling pressure as Bitcoin approaches February lows.
Historically, periods of heavy whale accumulation have frequently coincided with market bottoms or the early stages of major bull runs. When large investors aggressively purchase Bitcoin, it often signals confidence in future price appreciation. However, CryptoQuant's latest data indicates that accumulation among large holders has slowed considerably compared to previous periods of aggressive buying. While whales are not necessarily exiting the market, the pace of new purchases appears to have moderated significantly, raising questions about the strength of Bitcoin's current market structure. The current whale activity suggests that large investors are adapting their strategies to the prevailing bearish sentiment.
A particularly concerning development is the growing percentage of Bitcoin supply held at a loss. According to CryptoQuant analysis, approximately 40% of all Bitcoin in circulation was acquired at prices above current market levels. At market prices near $73,700, millions of Bitcoin are being held by investors whose positions are currently underwater. This metric is important because investor profitability often influences market behavior, as when large numbers of holders are in profit, they may be more willing to hold through volatility. Conversely, when substantial portions of the market are underwater, investor psychology can change significantly, as evidenced by the current massive liquidation volumes.
