Bitcoin whales stop shorting! Will BTC hold above $100K?
Here's why $100K could be a key short-term support and buying zone this week.
- Bitcoin reclaimed $105k after a weekend short-squeeze liquidated over $23M shorts
- Analysts are now sharing mixed price projections for BTC holding above $100k
On 2 June, Bitcoin [BTC] reclaimed $105k after last week’s 7% drop from over $110k to $103k. The brief correction in late May was marked by a decline in Bitcoin whale position sentiment, underscoring massive shorting by large players.
However, at press time, analytics platform Alphractal stated that the metric had stabilized – A sign that whales may have reduced their bearish bets.
“Whales have stopped shorting! Bitcoin might see some relief from here and start the week on a positive note.”
A short-squeeze? What’s next?
The reversal triggered a short-squeeze that left late short-sellers in losses. According to CoinGlass, $33 million worth of BTC positions were liquidated in the last 24 hours alone. Out of this, $23 million of shorts were wiped out.
Sunday’s short-squeeze allowed BTC to reclaim $105k ahead of key macro updates, including U.S labor market data on 6 June.
Market jitters accelerated last week’s BTC decline amid expectations of renewed trade wars after President Donald Trump claimed that China violated its preliminary agreement.
In fact, U.S Spot Bitcoin ETFs saw cumulative $917 million outflows last Thursday and Friday, underscoring uneasiness among institutional investors.
It remains to be seen whether the inflows in the products will recover into the new week, placing BTC at a pivotal position. Can it climb above $110k or drop below the $100k psychological level?
For his part, BTC trader Cryp Nuevo is expecting the price to drop to $100k before targeting $113k, citing massive liquidity pools at these levels. In most cases, these liquidity pools always act as price magnets.
Another trader, Daan Crypto Trades, made a similar projection for June. However, he forecasted a potential dip to $98k (Around a 200-day Simple Moving Average), before a rebound.
Meanwhile, analyst Justin Bennet agreed with Alphractal’s outlook, while also noting that BTC whales’ positioning has been flat.
The whale vs retail delta indicator tracks whale positioning, and the decline in late May meant exposure was trimmed. However, positioning has been flat in early June, and only extra exposure may drive BTC’s price forward.
Overall, whales reduced shorting bets against BTC after the weekend short-squeeze. However, according to analysts, a liquidity hunt to $100k cannot be overruled ahead of key macro updates.
