Bitcoin Rally at Risk? Whale Sentiment Indicator Signals Warning
In its latest market readout, the firm noted that as Bitcoin approached $95,000, large-scale investorscommonly referred to as whalesbegan pivoting away from long positions and started favoring shorts.
This shift is being tracked through Alphractals proprietary Whale Position Sentiment tool, which evaluates trades over $1 million across key exchanges alongside open interest data to gauge institutional sentiment.
A drop in the indicator while prices climb typically signals that whales are hedging or betting against further gains, while a rise tends to align with bullish momentum.
Alphractal says this metric has shown a striking 93% historical correlation with Bitcoins price movements, making it one of the more reliable behavioral signals in the space.
The firm cautioned that if the current downward trend in whale sentiment persists, Bitcoin could be in for a pullback. On the other hand, stabilization in the metric could reinforce the ongoing rally.
Looking ahead, the companys long-term Power Law projection suggests Bitcoin is unlikely to fall below $45,000 by 2026, regardless of short-term volatility.
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Text source: Coindoo
