Bitcoin Whale Liquidation Strategy: Consistently Profiting from Short Positions

SignatureDenied · 2026-02-14T23:06:49+00:00

The Bitcoin whale has been adopting a disciplined short liquidation strategy, generating a profit of $2.32 million in a recent operation and demonstrating a shift in focus toward consolidating gains. After significantly reducing short positions, it still maintains a position with a floating profit of 850%.

SignatureDenied

2026-02-14 23:06:49

Abstract generation in progress

An important Bitcoin whale continues to demonstrate a disciplined strategy of liquidating its shorts, generating new gains through structured trades. According to data released by ChainCatcher, this behavior marks a clear pattern of transformation in the actions of the major market player.

Over $2.32 Million Captured in the Latest Liquidation

In the past six hours, the whale executed another liquidation of its short position in BTC, resulting in a profit of approximately $2.32 million. The scale of the operation reached about $5.46 million, executed at an average price of around $76,200. This movement reinforces a pattern that has been repeating since November: five similar profit-taking operations at local lows, all without renewing short positions.

Strategic Shift: From Opening to Locking in Gains

Since May, when this round of short positions was established (May 9), the address has employed a consistent “buy low, sell high” tactic. However, the dynamics of the operations have undergone a significant change in recent months. The previous strategy of accumulating shorts has been replaced by a continuous and disciplined process of progressive liquidation, highlighting a focus on consolidating realized gains.

When comparing the previous peak of $136 million in short positions with the current balance, there is a cumulative reduction of approximately $120 million— a clear indicator of this strategic posture shift.

Remaining Position with Floating Gain of 850%

Even after multiple liquidation operations, the whale still holds a short position in BTC valued at $8.6 million, operating at an average price of $111,500. With Bitcoin currently trading at $69.98K, this remaining position shows a floating profit of $3.65 million, representing a potential gain of 850%.

This scenario illustrates a sophisticated risk management strategy, where the whale not only gradually liquidates its shorts to capture profits at multiple points but also maintains residual exposure that continues to generate significant returns in a volatile market.

BTC-0,68%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.