Bitcoin Short Positions Rise as Market Sentiment Turns to Fear

Bitcoin recently surpassed the $111,000 mark, setting a new All-Time-High. However, data from major exchanges shows traders are increasingly cautious about the prolonged price increase.

Data from CoinGlass indicates over 53% of Bitcoin positions are currently Short, meaning most traders are betting on price decline. In contrast, only 47.43% of positions are actively Longing.

Most Traders Shift to Downward Trend Despite Bitcoin Reaching All-Time-High

This pattern also appears on Binance, where Short trades occupy 54.05% of total open positions, compared to 45.95% for Long positions.

This increasing tendency towards Short reflects growing market skepticism, despite Bitcoin reaching new highs.

This psychological shift is reinforced by the latest move from famous crypto whale James Wynn, who changed his optimistic view after suffering millions in losses.

Previously, Wynn maintained a 40x leveraged Long position worth around $1.25 billion but exited after Bitcoin price dropped from $109,000 to around $107,107.

This trader closed his Long position with a $13.39 million loss, with liquidation occurring in less than an hour on 05/25.

He opened a Short position of 3,523 BTC—worth approximately $377 million—with an entry price of $107,128. This new trade has a liquidation threshold near $118,380.

Market analysts suggested that Wynn's change reflects broader signs of exhaustion in the current price cycle.

According to blockchain analysis company Alhpractal, Short-Term Holders (STHs) have begun distributing coins. History shows STH supply reduction often signals Bitcoin approaching a local peak.

The company noted that the current Short-Term Holders' realized price is $94,500, which is the last strong support before potential losses.

Conversely, Long-Term Holders (LTHs) remain steadfast, with their realized price rising to $33,000—emphasizing the increasingly different behavioral patterns.

Alphractal noted that although Bitcoin previously reached record highs under similar conditions in 2021, they warn the current cycle may be approaching exhaustion.

The company added that some macro indicators and historical halving trends suggest a potential adjustment after October 2025.