- Bitcoin rebounded to $105k after a short-squeeze liquidated $23 million in bearish bets, reversing last week’s 7% price decline.
- Large investors (whales) reduced short positions; analytics show their bearish bets stabilized, suggesting potential near-term price support for BTC.
Bitcoin traded above $105,000 on June 2nd. This price recovery followed a drop last week. BTC fell 7%, moving from over $110,000 down to $103,000. Large investors showed less positive sentiment during this late May decline. This shift indicated many were placing bets expecting the price to fall further.
Whale Position Sentiment shows that whales have stopped shorting Bitcoin! https://t.co/w361FeDuz5
— Alphractal (@Alphractal) June 1, 2025
Analytics platform Alphractal reported this whale sentiment metric stabilized near the weekend. This stabilization suggests these large investors may have reduced their bets against Bitcoin. Alphractal stated:
“Whales have stopped shorting! Bitcoin might see some relief from here and start the week on a positive note.”
The price reversal upwards triggered a short-squeeze. This event forced traders who bet on falling prices to exit their positions.
Many exited at a loss. Data from CoinGlass showed $33 million worth of Bitcoin positions closed involuntarily within 24 hours. Out of this total, $23 million belonged to these short bets.
Sunday’s short-squeeze helped push Bitcoin back over $105,000. This occurred before key economic updates. U.S. labor market data arrives on June 6th. Market concerns contributed to last week’s price dip. These concerns centered on possible trade tensions. U.S. President Donald Trump claimed China violated an initial agreement.
Analysts offer differing views. Trader Cryp Nuevo expects the price could first test $100,000. He then sees a potential move towards $113,000. He points to large concentrations of trading orders, called liquidity pools, near these prices. These pools often attract the price.
Another trader, Daan Crypto Trades, shared a comparable June outlook. He suggested a possible dip near $98,000. This level aligns with a long-term average price calculation. He anticipated a rebound from there. Analyst Justin Bennett agreed with Alphractal’s observation. Bennett noted whale positioning remains flat.
An indicator tracking whale activity versus smaller traders showed reduced exposure late in May. This meant whales cut back. Positioning held steady in early June. Increased exposure from these large players could provide upward momentum for Bitcoin’s price.
Bitcoin (BTC) is trading at $104,514 USD, showing a daily decline of −1.13%. This pullback comes after a strong May performance, with BTC gaining +7.76% over the last month and maintaining a +11.89% gain year-to-date. Over the past year, Bitcoin has surged by +54.22%, reinforcing its long-term bullish trajectory despite short-term fluctuations.
Currently, BTC is hovering near the 26-day EMA, acting as immediate support around the $104,600 level. If it breaks below this, analysts are watching for potential dips toward the 50-day EMA and the key $100,000 psychological support zone.
Fundamentally, the market remains bullish. BlackRock’s Bitcoin ETF now manages over $71 billion in assets, while major institutional players like Strategy and Marathon Digital continue to accumulate large BTC positions.
These actions suggest continued confidence in Bitcoin as a long-term asset. However, short-term sentiment remains cautious as traders await clearer signals around $107K resistance and $100K support zones.
