Bitcoin Approaches $106,000 Resistance: Analyzing Whale Profit-Taking Risks and Long Squeeze Potential

COINOTAG News, May 13th – A recent analysis from Cointelegraph highlights that Bitcoin’s momentum is showing signs of deceleration. As the cryptocurrency approaches the $106,000 resistance threshold, the likelihood of large investors, often referred to as whales, securing their profits becomes a growing concern. Joao Wedson, CEO of Alphractal, emphasized that Bitcoin is nearing the critical “Alpha Price” zone, which is historically significant for long-term holders when deciding to liquidate positions.

Furthermore, the potential for a long squeeze is intensifying. Should Bitcoin’s value retreat to $100,000, substantial leveraged long positions could face liquidation, prompting a surge of selling pressure. This pivotal price point may not only attract vigilant buyers anticipating a rebound but also serve as a crucial psychological benchmark, possibly leading to a retest of this significant level, hence shaping the future trajectory of Bitcoin.