Bitcoin Smart Money: Glassnode Reveals How Large Traders Timed The Pullback

Data from Glassnode has revealed how the large Bitcoin traders showed expert timing in the derivatives market during the market ￰0￱ Large Traders Have Shifted To A Net Short Bias In a new post on X, on-chain analytics firm Glassnode has talked about how the large Bitcoin traders behaved during the latest pullback in the cryptocurrency’s ￰1￱ is the chart shared by Glassnode that shows the trend in the BTC Long/Short Bias , a metric tracking the difference between long and short positions opened by the large investors on derivatives exchanges, over the past couple of ￰2￱ the graph, it’s visible that the Long/Short Bias has mostly been at a slight negative level for Bitcoin during the last few weeks, indicating that the large traders have just leaned toward short ￰3￱ BTC set its initial all-time high (ATH) above $125,000 on Saturday, however, the indicator assumed a small positive value, implying there was a slight bias toward a bullish sentiment among derivatives users.

Interestingly, this same behavior wasn’t seen during the second ATH break above $126,000 on ￰4￱ fact, the whales behaved in the completely opposite manner: the Long/Short Bias saw a plunge deep into the negative territory. “The shift to a net short bias suggests profit-taking on longs alongside new short positioning,” notes the analytics firm. Thus, it would seem that the large traders were anticipating a price pullback after the price top, so they started moving in ￰5￱ Long/Short Bias only saw a further decline when Tuesday’s fast crash below $121,000 took place. Now, the metric is sitting at a value of -4,416.20 BTC, which means bearish bets outweigh bullish ones by more than 4,400 ￰6￱ now remains to be seen how sentiment among the Bitcoin whales will develop in the coming ￰7￱ shift from smart money could potentially foreshadow another shift for the asset’s price as well, given the latest ￰8￱ some other news, the recent Bitcoin price surge has meant that Percent Supply in Profit has broken into an extreme territory, as Glassnode has pointed out in another X ￰9￱ displayed in the above chart, the Bitcoin Percent Supply in Profit broke above 95% when it crossed the $117,000 level during the rally.

Naturally, the metric later went on to reach 100% as BTC set a new ATH, since everyone is in the green whenever the cryptocurrency explores new price levels. Historically, the metric being above 95% has often indicated overheated conditions for ￰10￱ the analytics firm explains, such a high value is “a hallmark of Euphoria phases, where widespread profitability often fuels accelerated profit-taking and rising market risk.” BTC Price Bitcoin has shown some recovery during the past day as its price has returned to the $123,000 mark.