After weeks of relentless gains, Bitcoin’s biggest traders appear to be stepping back.

Fresh data from Glassnode shows that large market participants quietly flipped to a bearish stance just before the cryptocurrency slipped below $121,000 – a move some analysts say reflects expert timing rather than panic.

Whales Shift to Defensive Positions

According to the latest onchain data, major derivatives traders began shorting Bitcoin as it pushed past $126,000, marking a new all-time high. The same investors, who had been modestly long earlier in the rally, reversed direction once prices entered uncharted territory. By midweek, short exposure outweighed long positions by more than 4,400 BTC.

The shift implies that whales were locking in profits and hedging against a short-term cooldown. Historically, such moves often precede consolidation phases, especially when leverage builds up in futures markets. Analysts say the data shows a more disciplined and tactical approach from institutional participants, signaling maturity in Bitcoin’s trading ecosystem.

Overheating Signs Emerge on the Blockchain

While big players took a step back, onchain metrics reveal just how overheated the market has become. Glassnode’s latest report shows that nearly all Bitcoin in circulation is now held at a profit – a scenario typically associated with late-stage euphoria in bull markets. When 95% or more of coins are in the green, investors often begin taking profits, introducing volatility into the market.

Despite the correction, Bitcoin remains resilient near $122,000, retaining most of its recent gains. Analysts highlight the $117,000 range as a key area of potential support and note that if prices stabilize there, it could pave the way for another breakout later this quarter.

For now, the focus remains on whale behavior. Their shift from aggressive buying to defensive positioning may mark the market’s attempt to cool off – not a reversal, but a moment to catch its breath.