Bitcoin Faces Pressure as Whales Cut Holdings Sharply

Bitcoin whales dump over 38,000 BTC while small investors keep buying, showing a major shift in market sentiment and confidence.

Retail traders steadily accumulate as whales sell off, signaling a possible setup for Bitcoin’s next recovery phase above $100K.

The growing gap between whale selling and retail buying marks a turning point that could define Bitcoin’s next major price trend.

Bitcoin’s market faces renewed selling pressure as large holders continue to offload coins while smaller investors buy the dip. According to Santiment on X, Bitcoin has dropped to $101.8K, raising fears of slipping below $100K for the first time since June 22. The data reveals a widening gap in behavior between major holders and retail investors, creating uncertainty across the market.

Santiment reported, “Whales and sharks holding 10-10K $BTC hold 68.5% of Bitcoin’s supply and have dumped 38,366 coins since October 12th.” This marks a 0.28% drop in their collective holdings. Meanwhile, smaller traders holding less than 0.01 BTC have added 415 Bitcoin, a 0.85% increase over the same period. Hence, while institutional wallets are reducing exposure, small investors continue to accumulate, showing contrasting strategies within the market.

Diverging Wallet Trends

Sanbase data shows the most significant divergence between these wallet groups after October 12th. Large wallets show declining volumes on the chart’s green bars, reflecting reduced accumulation. The downward-trending orange line also confirms this pattern through early November. Conversely, small wallets, represented by the red line, continue to rise throughout the period, indicating consistent retail accumulation.

Moreover, Bitcoin’s price, shown by the white line, fluctuated between $60,000 and $70,000 during this time. Despite the volatility, retail investors kept buying on dips. This retail activity hints at growing confidence among smaller holders even as whales appear cautious. Besides, the market’s mixed sentiment reflects both fear and opportunity as traders await signs of a reversal.

Analysts Await Capitulation Signal

Santiment noted that markets tend to recover when key stakeholders begin reaccumulating coins. The firm stated, “Bulls need to see this trend completely flip in order to expect a sustained price rebound for all of crypto.” The analytics team added that small traders must show capitulation and fear, selling off coins at a loss before whales start buying again. Consequently, a shift in whale behavior may soon indicate the formation of a market bottom.

Additionally, the ongoing redistribution between small and large wallets highlights how sentiment shifts across market cycles. Large-scale selling combined with small-scale buying often signals transitional phases before stronger market movements occur.

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