Bitcoin Extends Slide Below $107,000 As Whale Activity Goes Wild On Hyperliquid

Bitcoin has been retreating from its all-time highs and whale activity on Hyperliquid may have heavily influenced that outcome. Even more surprising was that one large Bitcoin whale might be responsible for the bearish price action.

Analysts have been keeping track of a mega Bitcoin whale on Hyperliquid and the reasons are rather surprising. Previous analysis revealed that the whale (identified as James Wynn), previously executed multiple long positions collectively worth about $1.25 billion.

The same whale held the record for the largest single trade on Hyperliquid. Recent findings revealed that the same whale closed the $1.25 billion position in a move that reportedly triggered a 1.3% dip in Bitcoin price action. The same whale has reportedly executed a short position worth $111.8 million.

This was an important observation because analysts have been treating the whale’s movement as a market signal. Wynn’s pivot from bullish to bearish was therefore seen as a sign that bearish expectations were on the rise.

Hyperliquid Whale Activity Signaled Profit-Taking and Growing Downside Potential

The Hyperliquid whale’s trading activity aligned with external market data suggesting an expanding bearish footprint. The exchange-whale ratio on CryptoQuant surged as high as 0.65 on Saturday.

This was not only the highest exchange whale ratio observed last week but it was also a multi month high. The last time it revisited the same levels was on 16 July 2024.

The spike in exchange whale ratio confirmed that most of the Bitcoin being deposited onto exchanges came from whales. In other words, whales that purchased BTC at or near its lowest levels in April accelerated profit-taking last week.

Could the outcome signal more downside in the coming week? Extended downside in Bitcoin price action would be likely especially if the profit-taking extends to institutions. This is why Bitcoin ETF flows could set the pace for price action this week.

In the meantime, past data offered some interesting insights regarding the potential outcomes. The exchange whale ratio’s spike in July last year had a lot of similarities with Bitcoin’s present situation.

Price was deeply overbought after a substantial rally on both occasions. However, it is worth noting that BTC pulled back initially and then regained its bullish momentum for the remaining part of July 2024. A massive pullback followed in August and was exasperated by the Japanese Yen carry trade unwind.

Will BTC Price Action Follow a Similar Script Rest of May ?

A brief pullback closer to the $100,000 was probable as sell pressure appeared to be building. However, Bitcoin could still push higher and possibly to a new ATH above the current one in the days to come. Another rally would likely attract more retail activity, thus providing more exit liquidity for whales.

Interestingly, such an outcome similar to the July 2024 Bitcoin price movement is probable considering recent market data. We previously highlighted the possibility of another unexpected bearish event in June due to President Trump’s plans to re-ignite tariff wars, with the EU as the next major target.

In the meantime, BTC short term profit-taking was full swing during the weekend. Spot outflows in the last 3 days amounted to more than $1 billion. However, exchange flows were still at levels observed more than a year ago.

Exchange flow data revealed that exchange outflows were slightly higher in the last 24 hours compared to exchange inflows. In other words, demand was still outpacing sell pressure. An outcome that was not expected during instances of rising profit-taking.

The exchange flow data may support the idea that whales were recently engaged in price manipulation. Especially since Bitcoin open interest clocked a new ATH last week, meaning derivatives traders have been aggressively active as observed in Hyperliquid.

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