Why This Trader Changed His Stance On Bitcoin Price After $118K Prediction

As Bitcoin price closes in on its previous ATH, analysts have been keeping an eye on whale activity with particular focus on top crypto trader activities. This is because whales have a major impact on the markets and their movements may offer useful insights.

James Wynn (@JamesWynnReal), a top trader in particular, is worth a mention for numerous reasons. One of the notable reasons includes executing possibly the largest known single trades at $830 million. That makes him the biggest known whale.

Wynn also previously predicted that Bitcoin price would rally as high as $118,000. The whale also executed the aforementioned largest single trade indicating topside confidence. However, more recent data suggested that the whale was pivoting.

Whale Executes Large Short Position, Signaling Rising Bearish Sentiment For Bitcoin Price

More recent data revealed that Wynn closed about 2,139 BTC from the position, exiting about $230 million. At around the same time, another whale (that identifies as @qwatio on X), executed an $88.36 million short position.

Wynn locking in some profits plus another whale executing a 40X leverage position was confirmation of some growing bearish expectations. Interestingly, BTC embarked on some bearish price action in the last 24 hours. Bitcoin’s price declining from above $108,000 at its peak to the $106,500 at the time of observation.

The Bitcoin short position was in profit and extending its gap with its $108,500 liquidation price. Meanwhile, Wynn’s position was still in profit considering its $105,033 opening position and had a much more accommodative liquidation price of $100,330.

The slight profit-taking and observed shorts could signal the expectations of short term downside. Meanwhile, the fact that the large whale still had about $600 million in a long position suggested they were confidence of more upside.

This suggests that Wynn was still bullish despite taking some profits off the table just as Bitcoin’s price pushed above $107,000. These observations underscore the optimistic nature of the market at the time.

Bitcoin Open interest soars to new ATH

Bitcoin open interest surged past $74 billion in the last 24 hours, which was new territory after surpassing its January peak. Rising open interest in the derivatives segment often points towards growing market confidence.

However, the higher the level of open interest, the more the liquidation risk. And a sudden shift in one direction could trigger a massive spike in liquidations.

What are the chances that shorts could be obliterated? Previous reports suggested that there were over $1.1 billion worth of short positions to be liquidated at $108,000.

Bitcoin liquidation heatmap data on Coinglass also confirmed that there was a cluster of highly leveraged positions to be liquidated above $108,000.

Now that open interest is at new highs, the level of liquidity flow in the derivatives segment may offer more insights regards to market expectations. It may also create liquidation squeeze events.

A short squeeze event for example, may force most top short crypto trader accounts to buy more BTC to limit their losses. A move that could push Bitcoin price higher.

Interestingly, Bitcoin traders executing short positions were betting against institutions. Bitcoin ETFs acquired more almost $1 billion worth of the cryptocurrency on Monday and Tuesday.

The amount of liquidity flowing into BTC in the spot market was up by more than $144 million in the last 24 hours. This suggests that profit-taking was still low. In other words, shorts were betting against the current momentum.

The potential for limited downside would likely remain active as long as whales like Wynn kept their overly optimistic approach evident by their long positions. Bitcoin price’s fear-greed sentiment recently dropped to 70, indicating some retreat as price pushed closer to its previous ATH.

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