Large Address Opens $3.04M Long Position in Bitcoin at $96,400

A single address has opened a new leveraged long position in Bitcoin (BTC) at $96,400, with the total position size reaching approximately $3.04 million. The position includes both 10x leveraged BTC exposure and 3x leveraged FARTCOIN exposure. This move highlights the ongoing use of leveraged products in the crypto market, especially during periods of volatility.

The trader increased their BTC long position by 22.3 BTC within the last 30 minutes, pushing the unrealized profit to $1,014. The FARTCOIN portion of the position is valued at $892,000, with an unrealized profit of $11,500. These leveraged bets suggest a bullish outlook on both Bitcoin and the altcoin market.

The position is one of several large leveraged trades in recent days, indicating active speculation in the market. Bitcoin is currently trading near $90,000, below the entry point of this long position. This highlights the risks associated with leveraged trading, especially when entering at higher levels.

Why the Move Happened

The decision to open a long position at $96,400 may reflect the trader's belief in Bitcoin's potential to rebound above the $95,000 level. Analysts have noted that Bitcoin has been testing key support levels around $87,200 and $89,400. A successful break above $95,000 could trigger short covering and buying pressure, potentially setting up a rally to $101,500.

The timing of this position aligns with a broader market context in which Bitcoin has seen increased volatility due to macroeconomic factors such as U.S. jobs data and exchange-based selling activity. According to reports, the trader may have positioned for a potential bounce, leveraging market uncertainty as a buying opportunity.

How Markets Reacted

Bitcoin has remained near $90,000 in recent trading sessions, struggling to reclaim the $95,000 level that was briefly breached earlier in January. On-chain data indicates that large Bitcoin holders, or "whales," have remained cautious, with many reducing their holdings outside of exchange-related addresses. This suggests that institutional and major market participants are not aggressively accumulating BTC at current price levels.

FARTCOIN, a highly volatile altcoin, has also seen significant leveraged trading activity. A separate trader recently opened a $12.5 million leveraged long position in FARTCOIN and PUMP, signaling continued speculative interest in smaller tokens. However, the broader altcoin market remains under pressure, with Ethereum and XRP both trading at recent lows.

What Analysts Are Watching

Market observers are closely monitoring whether Bitcoin can hold above $87,200, a critical support level that has been tested multiple times in recent weeks. If BTC fails to hold this level, it could trigger further downward momentum, potentially pushing the price toward $69,230.

Analysts are also watching for signs of renewed institutional buying, particularly as spot Bitcoin ETFs continue to experience outflows. The Grayscale CoinDesk Crypto 5 ETF (GDLC) recently filed to enable options trading, which could provide new tools for hedging and speculation. However, ETF outflows have continued to rise, with over $681 million in net outflows recorded in the previous week.

Bitcoin's technical outlook remains mixed. While some indicators suggest a potential rebound, others highlight the risks of a deeper correction. The 50-week moving average remains a key level to watch, as it has historically signaled turning points in previous cycles.