Retail Bitcoin investors snapped up Bitcoin as whales sold, a pattern that could signal trouble for the asset price if history is any guide, according to sentiment platform santiment.
However, other crypto analysts are divided on how the coming weeks will unfold for bitcoin (BTC).
“Historically, prices tend to follow the direction of whales, not retail,” Santiment said in a market report on Saturday.
Santiment points out 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 are aggressively buying the dip.”
Bitcoin’s split into cohorts is a “cautionary signal,” Santiment said
During that time, Bitcoin fell from $ 115,000 to $ 98,000 on November 4, representing a decline of around 15%, according on CoinmarketCap. BTC price has since recovered to $103,780 at the time of publication.
Santiment described it as a “fundamental difference that emerged between large and small investors.” Santiment said:
“The variability in which whales sell while buying can be a caution signal.”
Other analysts are divided on how the coming weeks will play out for Bitcoin.
Bitfinex analysts told Cointelegraph that they expect near-term consolidation and some volatility, rather than “a clear sprint to new highs.”
“We believe that the ETF inflows earlier in October pushed the price to around $125,000, before the mid-month macro shocks, a major option expired, and earned profit to the high $100,000,” said the analysts.
On Friday, the Spot Bitcoin ETFS broke a six-day inflow streak that saw $2.04 billion in outflows, according in the distance.
Bitcoin has a chance to climb to $130,000 if conditions improve: analysts
They explained that if spot Bitcoin ETF inflows return to delivering more than $1 billion inflows per week and macro conditions improve, Bitcoin may have a chance to climb toward $130,000.
Related: Bitcoin Crisscrosses $100k as BTC Price ‘Bottoming Phase’ Begins
Meanwhile, Nansen Senior Research analyst Jake Kennis told Cointelegraph that although Bitcoin has historically posted year-over-year gains, “The recent liquidation and breakdown in market structure makes it less likely in the near term.”
“That said, there is still room for significant upside by the end of the year,” Kennis said, explaining that a new all-time high is still possible for Bitcoin this year if momentum “shifts decisively.”
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