Bitcoin whales are aggressively reducing long exposure, a move that analysts say has historically preceded major price gains.
The trend has reappeared as Bitcoin consolidates near current levels.
Data shows large traders on Bitfinex rotating out of long positions.
Similar behaviour in the past has often marked the early stages of significant rallies.
Whale Activity Signals Potential Breakout
TradingView data indicates whale long positions peaked at around 73,000 BTC in late December.
Since then, those positions have started to decline.
Bitcoin whales are widely viewed as “smart money” within the market.
Their positioning is closely watched for clues about future price direction.
“Bitfinex whales are aggressively closing $BTC longs, a signal that historically precedes massive volatility,” commentator MartyParty said in an X post.
“Last time this ‘unwind’ happened in early 2025, Bitcoin was stalling at $74k,” he added.
Wyckoff ‘Spring’ Pattern Comes Into Focus
MartyParty applied Wyckoff analysis to interpret the shift in whale behaviour.
In April last year, a similar reduction in long positions aligned with Bitcoin dipping below $75,000.
That low marked what Wyckoff theory calls a “spring.”
The spring phase often clears excess leverage from the market.
Following that event, Bitcoin rallied roughly 50% in just 43 days.
“The flush cleared leverage and ignited a 50% rally to $112k,” MartyParty said.
“With $BTC currently consolidating near $91.5k, a similar fractal move targets $135k+,” he added.
Whale Holdings Decline Over The Year
A broader look at onchain data shows a longer-term shift underway.
According to CryptoQuant, whale holdings have dropped by more than 200,000 BTC over the past year.
This reduction contrasts with increased exposure among smaller investors.
The trend suggests a gradual redistribution of Bitcoin ownership.
A Maturing Market Cycle
CryptoQuant contributor CryptoZeno described the shift as a sign of market maturation.
“Overall, Bitcoin seems to be transitioning from a cycle dominated by whale-driven accumulation,” he wrote.
“It is moving into a phase supported by a wider base of investors,” he added.
Such transitions are often associated with reduced reliance on a small group of large holders.
While volatility remains, broader ownership can support longer-term stability.
At the start of January, CryptoQuant pushed back against claims that whales were accumulating heavily near $90,000.
Instead, the data suggests whales are stepping back as the market structure evolves.
