Glassnode reported that whales who previously took bullish positions near Bitcoin’s bottom on Hyperliquid have turned net short for the first time since March.
According to the on-chain analytics firm’s post dated October 27, this group’s position balance shifted last week. Short positions aimed at profiting from a decline began to outweigh long positions opened on expectations of a rise.
The Group That Bought the Bottom Is Now Betting on a Drop
Glassnode said the same group of whales had previously caught Bitcoin’s bottom and taken long positions. Now, the total position of these large investors tracked on Hyperliquid has turned net bearish for the first time since March.
This shift reflects the directional preference of a group of investors rather than a single wallet’s trade. The question raised by the analysis is whether the whales are positioning early for a deeper pullback or will end up on the wrong side if the price turns higher.
A Deeper Drop or a Short Squeeze?
In the first scenario raised by Glassnode, Bitcoin’s pullback deepens and the whales’ bearish positions gain an advantage. In the second scenario, the price rises and investors holding short positions come under pressure.
In this second scenario, known as a short squeeze, buying to close short positions as losses mount can accelerate the price rise. Glassnode assesses the group’s new positioning through these two possibilities.
Not investment advice.