By Chris Hollingworth 
Many traders in the Bitcoin (BTC) market have recently shown bullish sentiment as prices surged to the $88,000 level. However, the failure to break through this level could signal a profit-taking opportunity. Alphractal, a crypto analytics platform, has observed that Bitcoin whales have initiated short positions at the $88,000 level.
According to a recent post by Alphractal, the “Whale Position Sentiment” metric has exhibited a significant reversal on the chart, indicating that major players with a bearish bias have entered the market. This metric analyzes the relationship between aggregated open interest and trades larger than $1 million across various exchanges.
Alphractal CEO Joao Wedson confirmed that whales have closed their long positions, historically influencing price movements. Additionally, 8 out of 10 on-chain signals on CryptoQuant have turned bearish, suggesting a potential pullback in Bitcoin’s price.
Despite these bearish signals, some investors have shown confidence in Bitcoin. Data from IntoTheBlock reveals net BTC outflows of $220 million from exchanges in the past 24 hours, totaling $424 million from March 18 to March 24. This trend indicates that certain holders are accumulating Bitcoin.
On the intraday chart, Bitcoin reached a high of $88,752 on March 24 but has yet to establish a new high. Bitcoin is currently moving within the trendlines of an ascending channel pattern, where it may encounter resistance from the upper range of the pattern and the 50-day and 100-day exponential moving averages on the daily chart.
For Bitcoin to sustain its rally towards $100,000, it would need to overcome the resistance between $88,000 and $90,000. Traders are closely watching these levels for potential price movements in the near term.
It’s important to note that this article does not offer investment advice. All trading decisions involve risk, and readers should conduct their own research before making any financial decisions.
