Bitcoin Whales Dey Build $110K Support or Dey Set Up Liquidity Trap?
Bitcoin don drift 4.26% from im $120,000 local high come dey hover near one key $110,000 support level, wey dey attract heavy long positions from whales wey dey use up to 40× leverage. Over 70% of Bitcoin’s perpetual futures open interest full of long positions, and funding rates still dey positive, show say plenty people dey bet say market go rise even though spot market dey stagnant. Lookonchain show say one $45 million whale long enter round $112,854 (1.28% profit) plus another $3.4 million position wey liquidation dey $112,644. Binance order books show say buy side liquidity low under $110,000, wey make e easy for whales to use slippage take trigger liquidity sweep. This fit make short squeeze happen if deeper bids show, or fit turn be calculated trap to offload leveraged longs for thin market. Traders suppose dey watch order-book depth and funding rates well well for signs say market fit turn.
Bearish
High-leverage whale dem dey long around di $110K floor as di buy-side liquidity shallow, dis fit mean say e be liquidity trap, no be pure bullish belief. Similar tins for 2021 and beginning of 2024, leveraged positions bin blow when whales trigger slippage for thin order books. Short term, crowded long open interest and positive funding rates fit raise liquidation risk if spot support fall. Long term, need steady spot demand and deeper bid walls to confirm real bullish momentum; if no, dis whale-driven squeeze fit quickly turn sell-off when whales shift to shorts.