Bitcoin dip may not be over as whales sell into retail buying — a bearish signal
Why it matters: Whale selling into retail buying signals potential further downside, impacting short-term investment strategies.
- Whales (holding 10-10,000 BTC) aggressively bought during the Iran-related sell-off and then offloaded 66% of those positions as prices rebounded to $74,000, according to Santiment.
- Retail investors (wallets holding less than 0.01 BTC) have been steadily increasing their positions as Bitcoin slipped below $70,000, a classic warning sign flagged by Santiment.
- Glassnode data indicates approximately 43% of Bitcoin's total supply is currently at a loss, creating selling pressure as prices attempt to rise.
- The Crypto Fear and Greed Index has dropped to 12, deep in "extreme fear" territory, one of its lowest readings since October, reflecting bearish sentiment.
Bitcoin's recent dip may not be over, as 'whales' (large holders) have been selling into rallies, while retail investors are buying the dips—a pattern historically signaling further downside. This divergence, coupled with 43% of Bitcoin supply now at a loss and extreme fear in the market, suggests a potential test of support near $60,000 rather than a breakout above $74,000.
