Bitcoin’s recent surge above $100,000 might be short-lived as several key factors suggest a potential price correction. Whales are unwinding their long positions, indicating market uncertainty. This aligns with rising whale activity on exchanges and increased capital rotation from Bitcoin to Ethereum. Here’s a closer look at these forces:**
**Whales Re-evaluating:** Open interest for Bitcoin has shrunk significantly compared to past rallies near $103,000. Data suggests that traders are taking off their positions, signaling a possible market shift away from bullish momentum.
**Liquidity Concentration:** Liquidity clusters identified on the Liquidation Heatmap suggest a potential drop zone between $98,500 and $92,900 if selling intensifies. These areas hold significant leverage and could attract price dips if bearish pressure builds.
**Whale Activity:** Increased exchange whale activity (Exchange Whale Ratio) indicates a potential shift towards selling, indicated by recent whale inflows into centralized exchanges like Coinbase and Robinhood.
**Capital Rotation Out of Bitcoin:** The trend of capital flowing out of Bitcoin and into Ethereum [ETH] continues to hold. This has been observed since the beginning of the year and is likely impacting Bitcoin’s price due to increased selling pressure.