Bitcoin [BTC] price movements are always closely watched by the market as it is the largest cryptocurrency and thus, affects the overall performance of the market.

Recently, “whales” have returned to shorting BTC as it nears $65K, raising concerns of a potential drop before any significant upside move.

The Whale Position Sentiment indicator, a tool that tracks whale activity on exchanges, has shown a decrease in sentiment, signaling more short positions. This change is often strongly correlated with Bitcoin price action.

For BTC to avoid falling into bearish territory, it must hold above $62K, a crucial level for the continuation of the current trend.

Average leverage spread

The decline in whale sentiment has reduced the average leverage spread between Bitcoin longs and shorts to below -10. This means that short leverage is now dominating the market, which was previously led by long leverage.

Although whales have shifted positions, the average leverage spread has not confirmed the bearish view. Bitcoin is still holding above $63K, maintaining support at the 200 exponential moving average.

Despite the whale activity, this suggests that BTC could still move higher if certain conditions are met…

UTXO Actual Price Distribution

The first key indicator supporting Bitcoin’s outlook is the UTXO Realized Price Distribution (URPD), which reveals that the $63K level is one of the most important support zones. This area also includes the $65K resistance level.

If Bitcoin holds above $63K, it could break above $65K. However, if it falls below this support, the price could drop to $60K before continuing its rally. The market is watching this area to determine Bitcoin's next move.

Bitcoin bot tracking indicator

Another tool that supports Bitcoin's bullish outlook is the Bot Tracking Indicator. This tool tracks the activity of high-frequency bots in the market, showing that bots are accumulating long-term buying positions.

Increased buying activity from bots is often correlated with price increases. If Bitcoin experiences a slight correction to $60K, this could attract more buying from whales at low prices, potentially pushing BTC back to $65K, resulting in significant profits for large investors.

Although whales have returned to shorting as Bitcoin nears $65K, the overall market structure remains intact. As long as BTC holds above key levels like $62K and $63K, the upside potential remains.

Bot activity and other on-chain indicators support the bullish view, suggesting any dips could be short-lived before BTC resumes its upward move.

Traders and investors should pay attention to these important support and resistance levels to predict the next move of the market.