This week, the cryptocurrency market is experiencing increased selling pressure as Bitcoin (BTC) dipped below $115,000, igniting a fierce battle between bullish and bearish traders on Hyperliquid.

Recent data from Lookonchain indicates that top traders have been rapidly adjusting their trades amidst heightened market volatility. Notably, some traders are holding strong, while others are preparing for further drops in market prices.

Whales Adjust Their Positions as Market Faces Turbulence

On-chain insights reveal a group of prominent investors on Hyperliquid actively reshuffling their strategies during the recent downturn. While some experienced traders maintain significant positive positions, others exhibit caution as the market shows signs of instability.

Lookonchain highlighted that the trader known as 0xc2a3, renowned for their flawless winning record, recently closed 2,186 BTC longs valued at roughly $256 million. Although they had substantial market exposure, their profits stood at only $1.4 million. Furthermore, after a series of aggressive long trades, this trader has also reduced their holdings in Ethereum (ETH) and Solana (SOL).

In another turn of events, Machi Big Brother, who previously recorded a gain of $44.8 million, has incurred a loss of $12.5 million after expanding their holdings in new ETH and HYPE long positions. Additionally, 0xf625 who profited $8.3 million during the market crash on October 11, has resumed shorting ETH, opening new 10x positions across two wallets within just 24 hours.

Market participant 0xddc7, maintaining an 80% win rate, is reportedly facing a significant loss of over $3.3 million on a short position. Notably, influencer and public trader James Wynn stands out as a cautionary example; Lookonchain has pointed out that nearly every recent trade he has made has resulted in liquidation, including a 40x short on Bitcoin. The analytics platform humorously advised its followers on X to “always take the opposite side of James’s trades,” reflecting the community’s growing skepticism of his approach.

This spate of repositioning comes on the heels of Bitcoin’s performance, which had recently surged beyond $115,000, largely attributed to signs of potential trade improvements between the U.S. and China that bolstered risk appetite. This surge wiped out over $370 million in short positions and restored the total crypto market cap above $4 trillion.

Analysts Favor a Market Reset Over a Breakdown

Despite recent drops, several analysts maintain a positive outlook for the medium-term trajectory of the market. Analyst Michaël van de Poppe has suggested that the altcoin sector has grappled with a downturn for nearly four years, marking its longest difficult period. However, he and others believe that various technical signals may indicate that this phase is approaching its conclusion, paving the way for potential price recovery.

Data from Lookonchain corroborates this mixed sentiment, showing that some significant holders are securing profits or adopting defensive short strategies, whereas others like 0xc2a3 are building long orders at crucial support levels, potentially betting on a brief rebound.