Bitcoin whales have begun unwinding their long positions after peaking near 73,000 BTC at the end of December, a move that some analysts interpret as an early sign of renewed bullish momentum. The unwinding of what traders term “smart money” positions is viewed as a potential precursor to a new upcycle, with Wyckoff framework and past cycles cited to explain the pattern. In prior episodes, similar long-position reductions by whales coincided with sustained Bitcoin rallies, prompting renewed market interest.
A notable analyst on X highlighted that Bitfinex whales are aggressively closing BTC longs, describing it as a signal historically associated with increased volatility. The analyst noted that, in early 2025, similar liquidations occurred when BTC traded around $74,000, suggesting the current phase could set the stage for outsized moves if leverage continues to unwind. History shows that after such liquidity flushes, Bitcoin has surged significantly within weeks, with the price climbing to roughly $112,000 in the past.
Market watchers have also pointed to macro-level indicators. On-chain analytics firm CryptoQuant argues the market is maturing, noting that whale holdings have declined by more than 200,000 BTC over the past year while retail investor share has risen. CryptoZeno adds that Bitcoin is transitioning away from a whale-driven accumulation regime toward a broader investor base, a typical hallmark of a maturing market and a gradually stabilizing long-term trend. If the unwind persists and price action confirms the pattern, traders are eyeing a potential move beyond $135,000 as a plausible upside scenario.
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