Bitcoin prices are steadily rebounding along with the overall recovery of the crypto market. This largest global cryptocurrency has retaken the $92,000 mark on Wednesday. Despite the strong rally, contrarian moves by core investors have sparked market doubts about the sustainability of this rebound.

Whales Slam the “Braking” on Bitcoin Bullish Momentum

As Bitcoin prices see a slight recovery, the derivatives market shifts again due to investors’ sudden strategic retreat. On-chain data shows that large Bitcoin holders (the “whales”) are massively exiting long positions, with a significant increase in bearish sentiment.

Joao Wedson, founder and author of the Alphractal analysis platform, analyzed the “Bitcoin Whale and Retail Delta Indicator” and found that whales have closed their long positions. This position adjustment or shift in sentiment occurred after these large investors had previously accumulated long positions.

This retreat not only marks a major change in market sentiment but also suggests that whales may be locking in profits from earlier gains or preparing for a potential further decline in Bitcoin’s price. Wedson emphasized that large investors are now rebalancing their short positions, while retail investors are increasing their holdings in the opposite direction, highlighting a clear divergence in sentiment between the two groups.

Source: Chart posted by Joao Wedson on X platform

Given that whale behavior has traditionally been regarded as a leading indicator of overall market price trends, this reversal in positions further intensifies concerns about Bitcoin’s short-term outlook. After a frenzy of rallying, the question remains whether the market is about to enter a phase of cooling off, which is currently a hot topic.

The expert pointed out that the current correlation pattern between indicators and price movements is highly similar to the market characteristics observed in February and April 2025 — suggesting that Bitcoin’s sideways consolidation could last much longer than most traders expect.

Collective Bullish Sentiment and FOMO Rising

Overall, as Bitcoin’s price rebounds, trader sentiment has significantly improved, with bullish voices increasing. According to a report from leading on-chain data platform Santiment, Bitcoin surged to $94,600 on Wednesday, reigniting traders’ enthusiasm after a long-awaited rally.

Notably, the brief rebound has triggered “Fear of Missing Out” (FOMO) among investors, with expectations of further Bitcoin gains climbing steadily. Santiment integrated data from social platforms like X, Reddit, and Telegram, revealing a sharp increase in bullish voices.

Blue bars in the chart represent the market’s “Bearish” sentiment, corresponding to fear, uncertainty, and doubt (FUD); historical patterns show that prices often rise counter to retail investors’ widespread sell-offs.

Red bars represent “Bullish” sentiment, indicating FOMO spreading; when bullish volume surges, prices typically undergo a correction — because retail traders tend to chase prices higher during rallies. The key logic in such scenarios is that market movements often go against the actions of small and medium traders.