“Only Retail Investors Got Trapped”: Bitcoin Long Positions Hit Record High Amid Market Fear

▲ Cryptocurrency whale / AI-generated image

Bitcoin (BTC) is experiencing extreme fear amid geopolitical tensions and macroeconomic uncertainty, yet large investors are seizing the situation as an opportunity to buy the dip, accumulating record levels of holdings.

On February 25 (local time), cryptocurrency analyst Lark Davis said in a video uploaded to his YouTube channel that while retail investors are fleeing the market in fear, institutions and whales are instead building record-long positions. Davis explained that although a sense of paranoia is spreading across the market due to U.S.-Iran tensions and concerns over overheating in the artificial intelligence sector, actual indicators are pointing in a different direction.

Bitcoin has been in a downtrend for months, with fear indicators reaching peak levels. However, considering that the decline in the S&P 500 has been relatively modest, pessimism in the digital asset market appears to be overdone. Davis projected that if concerns over military conflict in the Middle East are resolved and an agreement is reached, all assets, including Bitcoin, could see explosive gains.

On-chain data shows that during Bitcoin’s downturn, while retail investors were selling off their holdings, whales accumulated approximately 400,000 BTC, marking a massive transfer of wealth. In particular, hedge funds and institutional investors are currently maintaining their most aggressive net long positions on record, with substantial buy orders clustered between $55,000 and $60,000, forming a strong support zone.

From a technical analysis perspective, Bitcoin is displaying a pattern similar to when Google’s stock tested the Fibonacci 0.886 retracement level before surging sharply. Davis assessed that Bitcoin is currently forming a long lower wick at the same Fibonacci level, signaling preparation for a strong rebound. Notably, if the price recovers the $66,500 level, it would confirm that the recent decline was a bear trap and increase the likelihood of a shift into a new uptrend.

Although volatility remains in the digital asset market, major capital has already completed positioning ahead of a potential price expansion. Meta’s move to integrate stablecoin payments such as USDT and USDC into its services also serves as a strong positive factor supporting real market demand. Rather than being consumed by short-term fear, investors should closely monitor whale capital flows and the recovery of key technical support levels in shaping their strategies.

Disclaimer: This article is for investment reference only and does not assume responsibility for any investment losses incurred based on it. The content should be interpreted for informational purposes only.