Bitcoin Hovers Near ATH Amid Large-Scale Long Liquidations and Whale Accumulation

Bitcoin (BTC) has been hovering near its all-time high (ATH) of $111,814, and recent developments in the derivatives market suggest a potential reset. The Binance Liquidation Delta, which measures the difference between long and short liquidations on Binance’s futures market, has shown a consistent pattern of large-scale long position liquidations. These liquidations, sometimes exceeding $40 million, are disrupting the market and indicating bearish pressure or a leverage reset.

Despite the significant liquidations, funding rates on Binance remain neutral, hovering around zero. This neutral sentiment suggests that traders are cautiously reassessing their positions rather than panicking. The lack of extreme sentiment implies a more stable market environment, which could be a positive sign for Bitcoin's future price movements.

In parallel, whale activity signals accumulation rather than capitulation. Notably, Bitfinex saw its largest single-day BTC withdrawal since August 2019, with 20,000 BTC being pulled from the exchange. This transaction, valued at over $1.3 billion based on current prices, indicates that large-scale withdrawals often reflect long-term holding strategies, thereby alleviating immediate selling pressure on exchanges.

Considering the neutral funding environment, persistent long liquidations, and substantial whale outflows, the analyst suggested that Bitcoin may be positioning for another upward move – potentially to a new ATH. At the time of writing, BTC is trading 5.8% below its ATH. However, several technical and on-chain indicators hint at further upside for the world’s largest digital asset by market cap.

For instance, a recent projection by a CryptoQuant contributor suggested a price target of $112,000 following a bullish double bottom breakout. Additionally, a significant withdrawal of 7,883 BTC from Coinbase suggests that institutional investors may be positioning for the next leg up. That said, some warning signs persist. Recent on-chain data shows that long-term BTC holders are reducing their exposure to the digital asset, likely in anticipation of a price correction. At press time, BTC trades at $105,308, up 1.4% in the past 24 hours.