Bitcoin’s Recent Surge Above $100,000 May Face Short-Term Correction Amid Waning Whale Activity

Bitcoin’s recent surge above $100,000 may be fleeting, with emerging data signaling a potential pullback as market sentiment shifts.

• BTC whales are unwinding long positions in derivatives, signaling waning conviction and risk appetite at current price levels.

• Rising whale inflows to spot exchanges suggest sell-side pressure could drag Bitcoin below key liquidity zones.

Bitcoin’s ascent above $100,000 is raising concerns among investors, hinting at possible downward movement driven by changing whale activity.

Bitcoin whales’ momentum is weakening

Bullish sentiment among Bitcoin whales in the derivatives market is weakening. Historically, when Bitcoin rallies to the $103,000 level, Open Interest usually hovers above $68 billion. However, that’s not the case now.

At press time, Bitcoin’s Open Interest stood at $61.3 billion, suggesting traders were opening fewer positions than before.

Source: Alphractal

The Whale Position Sentiment revealed that whales were currently closing their long positions, signaling a market shift. Since whales control significant liquidity, their exit from long positions suggests declining sentiment and the likelihood of a short-term correction for Bitcoin.

Where is Bitcoin heading?

To determine where Bitcoin might decline to, COINOTAG analyzed the Liquidation Heatmap for liquidity clusters. Liquidity clusters are levels on the chart that typically attract price action, indicated by shaded areas. A liquidity cluster above the current price implies a likely rally to that level; a cluster below the price indicates an approaching drop.

First, there’s a key liquidity pocket around $98,500, with over $103 million in leverage stacked. Should selling intensify, price could wick down into that zone. The deeper cluster lies between $93,400 and $92,900—housing over $500 million in liquidation leverage. If bearish pressure builds, this zone becomes a magnet.

Source: CoinGlass

These remain the key levels to watch in the market, as price could likely decline to these zones.

What factors are likely to influence a price drop?

Further fueling bearish odds, the Exchange Whale Ratio climbed to 0.4, reflecting increased whale activity on centralized exchanges.

Source: CryptoQuant

Whale inflows of BTC into centralized exchanges provide further proof. Three notable moves include a 1,500 BTC transfer (approximately $154 million) into Coinbase, and two 500 BTC transfers—together worth $103 million—into Robinhood. Such movements from private wallets into centralized exchanges typically indicate intentions to sell.

On top of that, the BTC/ETH chart continues to bleed, suggesting that capital is rotating out of Bitcoin and into other assets, including Ethereum [ETH].

Source: TradingView

This chart has trended downward since the start of the year, and the recent rally confirms that more sellers than buyers are currently trading Bitcoin. In summary, if whales continue selling and liquidity keeps flowing out of Bitcoin, the asset is likely to drop notably.

Conclusion

In conclusion, the current indicators point to a precarious situation for Bitcoin, with whale activity suggesting potential selling pressure. If these trends persist, investors should stay vigilant as the market dynamics may soon shift.