In a shocking and devastating development, the price of Bitcoin fell back to the key price level of $100,000 after months of trading above that level. The current sharp decline of BTC has triggered a wave of uncertainty in the market, forcing large investors to dump their coins. However, short-term or retail investors are unfazed by the drop as they go on a BTC buying spree.
A difference in action between large and small Bitcoin investors
As Bitcoin price continues its decline towards key support levels, a stark difference has been observed between large and small investors. Amid the current wave of volatility, large BTC holders or whales continue to dump their holdings, triggering speculation about near-term uncertainty among dominant holders.
At the same time, small investors have been accumulating at a significant rate, indicating that they view the current downtrend as an ideal entry point. Santiment, a leading on-chain data analytics platform, common this gap between the two groups of investors on platform change of BTC possession.
Santiment declared by designating Bearish BTC price actionfalling to the $101,000 level. A move that sparked concerns among traders that the flagship asset could fall below the $100,000 threshold for the first time since June 22.
During this persistent price decline, whales and sharks have sold 38,366 BTC since October 12, resulting in a -0.28% decrease in their total holdings. This sell-off is seen among wallet addresses holding between 10 and 10,000 BTC, a group that collectively holds over 68.5% of the overall BTC supply.
In the meantime, shrimp with less than 0.01 BTC have accumulated 415 BTC in the same time frame, indicating a growth of +0.85% in their positions. Specifically, these are wallet addresses holding only 0.25% of the total BTC supply. Santiment emphasized that bulls must see a complete reversal of this trend in order to anticipate a long-term price increase for all cryptocurrencies. The reason is that markets tend to rise when major stakeholders accumulate BTC that smaller holders lose.
In the meantime, the platform says shrimp traders or micro traders must show capitulation and fear, which will make them lose patience and sell their coins at a loss, thus allowing the whales to resume their accumulation. When this happens, which Santiment strongly believes, it will indicate a market bottom and the best buying opportunity.
BTC among the trendiest cryptos
According to According to Santiment data, Bitcoin is among the top trending assets in the market. Indeed, the asset closed the month of October in the red for the first time since 2018, thus ending its long winning streak. Additionally, the bears put pressure on the market with heavy selling from whales and long-term holders.
Even though BTC started November on a bearish note, historical data suggests that this month usually precedes strong gains. However, Santiment urges traders to be cautious and watch for signs of a bullish reversal.
Featured image from Pixabay, chart from Tradingview.com
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