A whale places $74.5M in short positions against Bitcoin after its price reaches $92K.

Whale Purchases $91M in Bitcoin as Retail Shorts Pile Up, Potential Short Squeeze in Play

Bitcoin Hits $93K with Strong Momentum, But RSI Signals Possible Near-Term Exhaustion

Bitcoin [BTC] has surged past the $90,000 mark again, currently trading at $93,556. This rally is partly driven by accumulation from large whales, even as retail traders continue to increase short positions.

With market sentiment divided, the crypto community is left wondering whether a violent short squeeze is on the horizon or if Bitcoin is forming a local top.

Whale Buys $91M in BTC, Setting the Stage for a Bitcoin Short Squeeze

Just minutes before Bitcoin reclaimed the $90,000 level, a Binance hot wallet received a massive transfer of 1,000 BTC, valued at over $91 million. This move suggests calculated accumulation by a whale betting on continued upward momentum as the market gains strength.

However, not all whales are in agreement.

Contrasting Whale Strategies: Long Bets vs. Bitcoin Short Positions

Shortly after Bitcoin crossed $92,000, two whale wallets took opposing positions, opening massive short positions using 6x leverage. These positions, totaling $74.5 million, were set at $92,469.1 and $92,664.8. With liquidation levels above $107,000, these whales are anticipating a near-term price correction.

This divergence in whale sentiment highlights the uncertainty in the market. While some whales are doubling down on the bullish trend, others are positioning for a sharp reversal.

Retail Traders Bet Against Bitcoin, Creating Short Squeeze Potential

As Bitcoin pushes past the $90,000 mark, retail traders have begun to take a contrarian stance, increasing their short positions despite the price climb.

The Retail Long/Short Ratio has steadily declined, with more traders betting against Bitcoin. Such an accumulation of short positions during a rally can set the stage for a Bitcoin short squeeze.

A short squeeze occurs when prices rise sharply, forcing short sellers to buy back their positions to cover losses. Heatmaps show that this pattern is not exclusive to Bitcoin, as short positions dominate retail flows across various assets.

While this could provide short-term gains, a shift towards more long positions could signal market exhaustion and the formation of a local top — potentially marking the peak of the current rally.

Source : Coinglass

Bitcoin’s Momentum Remains Strong, But Short-Term Exhaustion Signs Emerge

Bitcoin recently reached $93,000, continuing its upward trend with consecutive green candles and a bullish gap from $88,000. At press time, the RSI is at 68, just below overbought territory. This suggests that while bullish momentum remains strong, Bitcoin could be nearing a point of exhaustion.

Meanwhile, the On-Balance Volume (OBV) indicator continues to trend higher, suggesting solid buying pressure supporting the rally. If Bitcoin closes above $94,000 with increased volume, it could push towards $96,000 and beyond. However, a cooling RSI or bearish divergence could signal weakening momentum, making $91,000 a crucial support level to monitor in case of a pullback.

Source : Tradingview

Conclusion: Bitcoin’s Rally Faces Key Market Forks – Short Squeeze or Pullback?

As Bitcoin pushes higher, the market is becoming increasingly divided, with whales and retail traders taking opposing positions. A potential Bitcoin whale short squeeze looms, but signs of near-term exhaustion are emerging. Whether Bitcoin can continue its ascent or faces a pullback will depend on momentum and how the market responds to these key levels in the coming days.