Whales Shorting Bitcoin Aggressively: Can BTC Hold Above 200EMA?

The cryptocurrency market cycles through intense emotions, especially as traders closely monitor Bitcoin’s price performance.

These on-chain data revealed valuable insights for traders, particularly as Bitcoin leveraged positions reached unprecedented levels.

This rise in leverage generated increased concerns over BTC’s potential volatility, sparking anxiety among traders who took on risky positions.

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The three-day liquidation heat map suggested many investors expected election-driven volatility, which could push Bitcoin’s price down.

Recently, whales aggressively increased their short positions using significant leverage as they sought out liquidity suggesting potential downward pressure for BTC.

While some large-scale investors faced liquidations, they generally found greater success than retail traders, controlling over 90% of the trading volume in these high-stakes environments.

CME Gap Sparks Caution for Leverage Traders

Bitcoin showed a slight deviation from its Chicago Mercantile Exchange (CME) closing price, drawing cautious optimism among traders.

Bitcoin’s price held relatively stable over the weekend, experiencing only a slight deviation from the CME closing price.

Though this deviation was small, it highlighted the potential for price swings in the coming week, leading analysts to recommend caution around leverage positions.

With election-related uncertainty looming, many advised against using leverage as it could easily lead to unfavorable price fluctuations.

Avoiding leverage could protect traders from possible volatility and preserve capital in the face of unpredictable price movements.

Key Moving Averages and Fibonacci Levels Provide BTC Support

As Bitcoin maintained its position above the daily 200-day moving average (200MA) and exponential moving average (200EMA), market participants speculated on its next move.

Bitcoin’s chart signaled positive momentum as it remained above the 200MA and 200EMA after breaking out of a downward trend channel. Despite uncertainties, BTC’s price action held strong, reflecting the potential for upward movement.

This trend, combined with BTC’s position above key moving averages, strengthened the case for sustained growth, with some market watchers eyeing an eventual break to an all-time high.

Though election outcomes may introduce volatility, BTC’s price above the 200-day averages suggested resilience.

Following a healthy pullback, Bitcoin held onto its 0.618 Fibonacci retracement level, which often serves as a solid support in bullish trends.

Should BTC sustain this support, it could fuel another upward push, drawing interest from both short-term and long-term investors.

Furthermore, Bitcoin reached a 50% time retracement on October 20, a notable cycle midpoint that often aligns with trend shifts.

Analysts highlighted key dates, such as December 9, 2024, and February 5, 2025, as crucial markers that could influence BTC’s long-term price direction.

Fibonacci time cycles suggested these dates could bring pivotal changes, making them essential for traders’ radar.

Bitcoin Price Future Outlook

Bitcoin continued to navigate a market influenced by emotional cycles, leverage risks, and strong whale participation.

While BTC’s position above the 200MA and 200EMA indicated a promising uptrend, caution remained paramount. With significant Fibonacci levels providing support, the coming months could see pivotal moments for BTC’s price.

If Bitcoin sustains momentum through key time markers, the market could shift, potentially setting up a rally. However, traders would need patience, carefully observing each new development for a clearer picture of Bitcoin’s longer-term trajectory.