Bitcoin extended its decline, dropping to a low of $65,548 amid a broader market pullback. At press time, BTC traded at $66,338, down 3.3% on daily charts. The drop triggered over $183 million in liquidations, predominantly from long positions. Concurrently, large-scale investors, or whales, shifted aggressively to short bets in the derivatives market, signaling prevailing bearish sentiment.
The cryptocurrency market saw Bitcoin fall further, dropping to a low of $65,548. At press time, Bitcoin traded at $66,338, representing a daily decline of 3.3%.
Heightened downside volatility resulted in massive liquidations, especially for long positions. CoinGlass data showed $183 million in Bitcoin liquidations, with $170 million of that coming from longs.
Whale activity in the derivatives market intensified despite the liquidations. According to Lookonchain, one whale opened another 2x short position on 410 BTC worth $27 million.
This followed profitable short positions by the same trader, who had previously made $8.65 million. Onchain Lens also reported the whale “pension-usdt.eth” closed a BTC short position for a $1.7 million profit.
The market-wide bearish tilt was reflected in the Long/Short Ratio staying below 1 for 48 hours. A ratio of 0.93 at press time suggested most futures participants anticipated further price declines.
Selling pressure dominated both spot and futures markets. On the spot side, NYDIG moved 4,500 BTC worth $295.5 million to firms like Wintermute, Cumberland, FalconX, B2C2 Group, and Galaxy Digital.
Futures market data from CoinGlass showed over $16.89 billion flowed out compared to $15 billion in inflows. This resulted in a netflow decline of 243% to negative $1.83 billion, indicating aggressive selling activity.
Technical indicators reinforced the downward momentum. The Stochastic Momentum Index fell further into negative territory, while the Momentum indicator also remained negative.
