Many Bitcoin (BTC) traders were bullish this week as prices rose deeply to the $88,000 level, but inability to overcome this level in the short term could be a take probit signal.
Crypto Analytics platform, Alphractal, noted that Bitcoin Zilla entered a short position at the $88,000 level.
In a recent X post, the platform highlights the “Whale Position Emotion” metric has shown a sharp reversal on the chart, indicating that key players with bearish bias have stepped out. Metrics define relationships with transactions of more than $1 million across multiple exchanges.
Bitcoin: Whale’s position emotion. Source: x
As shown in the chart, the two-wheeled area is synonymous with the price of Bitcoin dropping to the $88,000 level. Alphractal said:
“When feelings about the whale’s position begin to decline, even if prices rise temporarily, a whale is in a short position is a strong signal and could lead to a price drop.”
Alphractal CEO Joao Wedson also confirmed that the whales have closed their long positions and that prices have historically moved according to directional bias.
Bitcoin: Bull score signal. Source: Cryptoquant
Similarly, eight of the 10 on-chain signals on the crypto were bearish. As mentioned above, except for Stablecoin’s liquidity and technical signal metrics, all other metrics flash red, highlighting the possibility of a pullback on Bitcoin prices.
Last week, Cryptoquant CEO Ki Young Ju said the market has entered the bare market and investors should expect “bearish or sideways price action of six to 12 months.”
Related: Will Bitcoin price reach $130,000 in 90 days? Yes, one analyst says
Bitcoin leaks reach $424 million in seven days
On-chain metrics have turned red, but some investors have shown confidence in Bitcoin. Data from IntotheBlock highlighted $220 million in Net BTC leaks from the exchange over the past 24 hours. The total reached $424 million from March 18th to March 24th. This trend means that certain holders are accumulating.
Bitcoin net leakage due to IntotheBlock. Source: x
On the lower time frame (LTF) chart, Bitcoin formed an intraday high on March 24th at $88,752, but since then, BTC has yet to establish a new intraday high.
Bitcoin 4-hour chart. Source: CointeLegraph/TradingView
As Bitcoin moves within the trendline of the ascending channel pattern, prices are expected to face resistance from the top range of the pattern and the 50-day, 100-day exponential moving average of the daily chart.
Bitcoin needs to exceed $90,000 to continue to $100,000 at ongoing rally, as whales can short circuit between $88,000 and $90,000.
Related: Bitcoin sets sights to “spoofy” $90K resistors with new BTC price rise
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
