Key Takeaways
Bitcoin is holding near the crucial $110k support, attracting heavy long positions from whales using high leverage. Strategic positioning or risky overreach?
Bitcoin [BTC] pulled back 4.26% off its $120k local high, now sitting at a key inflection zone. This is where traders start eyeing a bottom, creating a setup that could trigger a textbook short squeeze.
But perp market data suggests a crowded trade. Over 70% of Bitcoin’s Open Interest is skewed long. Meanwhile, a whale opened a $45 million long at 40x leverage around $112,854.
That puts the position about 1.28% in profit. Since then, more size has piled in with similar leverage. Do these longs know something the rest don’t, or are they stacking into a liquidity trap?
Deep pockets bet big while the market hesitates
The market has flipped risk-off once again, with BTC coiling just 3.5% above the key $110k supply wall. With spot cooling off, derivatives take center stage, and the stakes are only getting higher.
Despite a 4.26% drawdown, BTC’s aggregated OI has edged up from $79.56 billion to $79.70 billion, indicating leverage remains sticky. Coupled with a +0.0046% Funding Rate, the perp market remains skewed long.
Whales are pressing the bid. Lookonchain flagged another $3.4 million long with liquidation set at $112,644, still in the green.
This is another sign that big players are holding directional conviction while the market churns.
Source: CoinGlass
Normally, when early longs are in profit, it fuels copycat positioning. Binance’s 60% long-side skew reflects that herd behavior. But in a thin market, it’s not just about position size, it’s about intent.
Simply put, this kind of move can either mark the first leg of a “coordinated” long squeeze, or a well-timed trap, baiting overleveraged longs only to unwind into a liquidity sweep.
Bitcoin whales exploit thin books for slippage gains
Orderbook depth on Binance confirms a thin spot market. Buy-side liquidity (green side) is shallow, with no major bid walls offering support. In contrast, sell-side orders (red side) are stacked more heavily.
According to AMBCrypto, this imbalance creates ideal conditions for whales to exploit. With some already in profit on their longs, even a small wave of sell pressure can cause sharp slippage due to shallow bids below.
Once Bitcoin gets pushed into these low-liquidity pockets, it sets up a prime opportunity for whales to reload on the cheap, all while retail scrambles on the sidelines.
Source: Binance
In current market conditions, heavy long positioning from whales shouldn’t be mistaken for pure bullish conviction. Instead, it can reflect a calculated liquidity play.
With Bitcoin’s spot demand still weak, it looks more like a setup to profit off volatility.
Unless deeper bid walls stack up soon, BTC’s $110k floor could get tested, not from panic selling, but from whales rotating short after luring in longs.
It’s a classic liquidity trap mechanic — Something to keep it on your radar.
