Retail bitcoin investors are grabbing Bitcoin as whales sell off, a pattern that could signal trouble for the asset price if history is any guide, according to platform Santiment.
However, other crypto analysts are divided on how the next few weeks will play out for Bitcoin (BTC).
“Historically, prices tend to follow the direction of whales, not retail,” Santiment he said in a market report on Saturday.
Santiment noted that since October 12, Bitcoin whales — wallets that hold between 10 and 10,000 BTC — have sold approximately 32,500 Bitcoins. However, Santiment added that “small retail wallets aggressively bought the dip.”
Bitcoin’s split among cohorts is a “warning signal,” says Santiment
During that time, Bitcoin fell from $115,000 to $98,000 on November 4, a drop of around 15%. according to on CoinMarketCap. The price of BTC has since recovered to $103,780 at the time of publication.
Santiment described this as “a big discrepancy between large and small investors.” Sentiment said:
“A divergence where whales are selling while retail is buying can be a warning signal.”
Other analysts are divided on how the next few weeks will play out for Bitcoin.
Bitfinex analysts told Cointelegraph that they expect short-term consolidation and some volatility rather than a “clear sprint to new highs.”
“We believe ETF inflows pushed the price to around $125,000 earlier in October, before mid-month macro shocks, large option expirations and profit-taking pushed the price back to the high $100,000s,” the analysts said.
On Friday, spot Bitcoin ETFs snapped a six-day losing streak that saw outflows of $2.04 billion, according to in Farside.
Bitcoin has a chance to climb to $130,000 if conditions improve: analysts
They explained that if current Bitcoin ETF inflows return to inflows above $1 billion per week and macro conditions improve, Bitcoin could have a chance to climb toward $130,000.
Related: Bitcoin crosses $100k as BTC’s ‘bottom price phase’ begins
Meanwhile, Nansen senior research analyst Jake Kennis told Cointelegraph that while Bitcoin has historically seen year-over-year gains, “the recent liquidation and breakdown of the market structure make that far less likely in the short term.”
“Regardless, there’s still room for a significant upside by the end of the year,” Kennis said, explaining that new all-time highs for Bitcoin remain possible this year if momentum “changes decisively.”
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