Amid the broader market drawdown, Bitcoin’s bearish streak extended, dropping to a 6-week low of $72,728. At press time, Bitcoin traded at $73,376, down 3.2% on the daily charts, adding to its 5% weekly drop.
With the market on its back foot, investors, especially whales on the derivatives, were forced to reposition themselves.
Garret Jin adds Bitcoin long to $94 million
Despite the sharp market drop, some whales have remained bullish and aggressively bet on a rebound. According to Lookonchain, popular whale Garret Jin entered the market to cover his long position amid liquidation risk.
Garret Jin raised his long position to 1268 BTC worth $94.4 million. With the market drop, the whale is down $2.08 million.
Garret continued to add to long positions to avoid liquidation amid intense long liquidation. According to CoinGlass data, total longs liquidated jumped to $348 million, with total liquidation reaching $366 million.
Bitcoin derivatives remain bearish
Bitcoin [BTC] whales have remained extremely active in the Futures market. Futures Average Order Size data from CryptoQuant showed that large whale orders still dominate the market.
This implies that whales remain extremely active in the derivatives market, but their order volume has declined significantly.
Now, as the market weakens, these whales have begun to reduce their exposure. Derivatives Buy Sell Ratio dropped to a two-week low of 0.9.
A ratio below 1 suggests that sellers are dominant on the futures side. When sellers dominate derivatives during a market correction, it signals risk-off sentiment, with traders fearing liquidations.
Is $70k support at risk?
Bitcoin’s downside momentum strengthened further, largely due to the long squeeze over the past day. In fact, the negative index (-DI) jumped to a monthly high of 29.
At the same time, its positive index dropped to 12 while the ADX sat around 14. With ADX and -DI above +DI, this suggests the downtrend is extremely strong.
Historically, when this momentum indicator is set this way, it has signaled a higher likelihood of trend continuation. Therefore, if the pressure holds and Futures whales show risk-off sentiment, Bitcoin could drop to $70,500.
However, if the market cools down and excessive leverage is flushed out, BTC could see a healthy reset. In doing so, the market could rebound above $75k, setting a path for a clear recovery.
Final Summary
- Bitcoin whale Garret Jin raised his long position to 1,268 BTC, worth $94.4 million, as long liquidations reached $348 million.
- BTC dropped to a monthly low of $72k as investor sentiment turned risk-off.