Bitcoin Exhibits Steady Price Appreciation Amid Notable Decline in Whale Long Positions
As of April 16, 2025, Bitcoin’s market dynamics reveal a gradual upward trajectory in its price, contrasting with a substantial reduction in long positions held by major investors, commonly referred to as ’whales’. This divergence suggests a cautious approach among large-scale holders despite the asset’s positive momentum. The trend highlights potential shifts in market sentiment, where institutional players may be hedging or reallocating capital, even as retail and mid-tier investors continue to drive price appreciation. Analysts are closely monitoring these developments to assess whether this reduction in whale activity signals an impending consolidation phase or a strategic repositioning ahead of anticipated volatility.
BTC Whales Pulling Back On Long Positions
Bitcoin’s renewed price growth is receiving controversial reactions from investors and traders. An insightful analysis shared by FundingVest, an on-chain expert and verified author on the X (formerly Twitter) platform, has revealed a bearish sentiment among Bitcoin whale investors.
In the X post, the expert highlighted that whale-long positions have been decreasing even as BTC’s price witnessed a surge to the $86,000 threshold. This unexpected turn of events among whale traders suggests a potential shift in conviction or a strategic retreat due to the current market bearish pressure that has increased the volatility of digital assets.
Furthermore, the change in behavior might be a signal that institutional confidence in BTC is fading, raising concerns about its recent uptrend. According to the expert, the development implies that big investors might be getting ready to go short or close off their long bets.
Even though the whales are banking on a pullback, retail investors, often regarded as small traders, seem to be increasing their long exposure. FundingVest spotted the shift in investor behavior after investigating the Bitcoin Whale vs Retail Ratio, a crucial metric for determining BTC’s trading activity.
The key metric shows a surge in retail activity as these traders are becoming more active while whales are stepping back. However, when looking at the 3-day heatmap chart, an increase in long positions and accumulation in both directions can be observed.
Such a development sets the stage for potential volatility and strengthens the case for a contrarian strategy. Meanwhile, it is more likely that the market will increase when long positions have been completely flushed out. FundingVest has drawn attention toward some short positions that were closed last week, which he believes should be taken into account during the period.
Demand For Bitcoin Gaining Traction
BTC’s recent upswing has sparked interest in the flagship asset as apparent demand grows slowly. Kripto Mevsimi reported in a quick-take post on the CryptoQuant platform that Bitcoin Apparent Demand has begun to recover from deep negative territory in the 30-day time frame, suggesting a possible shift in market behavior. Although this is bullish, the on-chain expert believes it is too soon to consider the development as the start of a new bullish trend, highlighting a similar scenario in 2021.
Despite a brief stabilization or rebound in price, demand stayed negative or close to zero for months in 2021. Meanwhile, it was not until after prolonged consolidation that a meaningful structural recovery emerged. The current rebound may be significant, but it is more likely a pause in pressure than a clear indication of accumulation or a macro bottom.
