Bitcoin Whales Bet Big on Rebound as Retail Stays Short

Bitcoin has been trading within a narrow margin between $62k and $63k since facing rejection at $65,409 four days ago. The king coin currently trades around $62838, marking a 1.01% drop on the daily charts and adding to its 4% weekly decline.

Despite this, some traders remain optimistic and are betting on a major price rebound. Two whale wallets have taken an $86 million bet by flipping long on BTC, with one wallet opening a 20x long position on 840 BTC worth $52 million and the other on 523 BTC worth $32 million.

However, this optimism is not shared by most market participants, as evidenced by CoinGlass data showing a Long/Short Ratio of 0.84, indicating that most traders have opened short positions. The Bitcoin Estimated Leverage Ratio has also been declining over the past three days, suggesting that traders are deleveraging and speculative demand is weakening.

The market conditions are skewed bearish, with the downside risk rising, as confirmed by the Relative Volatility Index (RVI) crossing the midpoint and falling to 48. If this trend continues, Bitcoin may lose its $62k support and drop to $60,270.