Bitcoin (BTC) has once again broken through the $90,000 barrier, with the trading price of BTC reaching $93,556. This price breakthrough is partly due to wealthy whales increasing their Bitcoin holdings, while at the same time, retail investors doubled down on short positions, leading to a clear divergence in market sentiment.
Whales are increasing their long positions, but shorts are quietly adding as well ⚖️
Five minutes before BTC re-broke $90,000, Binance's hot wallet received a transfer of 1,000 BTC, worth over $91 million. This transfer indicates that some whales are carefully calculating their increase in holdings, betting that the market will continue to rise.
However, the market is not unanimously bullish. Lookonchain data shows that shortly after BTC prices broke through $92,000, two wallets opened large short positions with 6x leverage at $92,469.1 and $92,664.8, totaling a position size of $74.5 million. The liquidation levels for these short positions are set above $107,000, indicating that these whales are preparing for a market reversal or adjustment.
This stark contrast in trends indicates that the sentiment among whales shows significant divergence. Some whales are bullish, while others are preparing for a possible sharp adjustment. This uncertainty in the market is becoming the focus of investor attention.
Retail sentiment has reversed, short positions surge 💥
As Bitcoin breaks through $90,000, retail market sentiment has also reversed. Despite the continued rise in BTC prices, retail investors are consistently increasing their short positions, with the long/short ratio steadily declining. This indicates a significant accumulation of short positions in the market, creating conditions for a possible short squeeze.
Short positions refer to investors betting on a decline in asset prices. When a large accumulation of short positions occurs during a price increase, a short squeeze phenomenon may arise once prices rise significantly, forcing short traders to cover their positions, further pushing prices up.
However, the increase in short positions also indicates that the market may have overheated. This phenomenon is not limited to Bitcoin; many assets are also filled with a significant amount of short positions among retail flows. While a short squeeze may drive prices up in the short term, it may also signal an overheated market and could lead to the formation of local tops.
Bitcoin's trend is strong, but can it last? 🔥
The price of Bitcoin has climbed to $93,000, continuing its upward momentum and forming consecutive green candlesticks. The RSI is currently around 68, slightly below the overbought area, indicating that bullish momentum remains strong but may be nearing exhaustion. Meanwhile, the OBV (On-Balance Volume) continues to rise, showing strong buying pressure that supports the price increase.
If BTC closes above $94,000 with increased trading volume in the short term, it may open the door to prices of $96,000 or even higher. However, a slight decline in RSI or bearish divergence suggests that prices may experience a pullback, with $91,000 becoming a key support level to watch during downside risks.
Summary: The market is full of divergence; vigilance is necessary ⚠️
Currently, the market presents a clear divergence in sentiment: some whales are increasing their long positions, others are going short, and retail short positions are also continuously increasing. In the short term, Bitcoin may be driven by a short squeeze, but signs of an overheated market also indicate potential downside risks. Investors should operate cautiously, closely monitor changes in key support and resistance levels, and be prepared to respond to market fluctuations at any time!
