Bitcoin Drops 30% as Sharks Accumulate, Whales Fuel Sell-Off Risk

Bitcoin dips 30% amid shark accumulation and whale selling, risking further decline below $85,000 support

  • Bitcoin has dropped 30% from its peak of $126,200, trading near $85,000 support.
  • Entities holding 100 to 1,000 BTC, called “Bitcoin sharks,” have increased holdings by about 54,000 BTC in one week.
  • Long-term holders and whales with over 10,000 BTC are selling, limiting upside potential.
  • Record institutional buying is being offset by heavy distribution from older holders.
  • Recent breakdown below parabolic support raises risks of further price declines.

Bitcoin (BTC) has fallen approximately 30% from its all-time high of $126,200 and is currently trading slightly above the $85,000 support level. This decline has raised concerns about a possible further drop toward the $70,000 range. Despite the pullback, onchain data reveals that institutions and high-net-worth investors are actively accumulating Bitcoin.

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In the past week, mid-sized Bitcoin holders, defined as entities holding between 100 and 1,000 BTC and referred to as “sharks,” increased their total holdings by about 54,000 BTC, reaching approximately 3.575 million BTC from 3.521 million BTC. This pace of accumulation is the fastest since 2012, a period that preceded a significant Bitcoin rally, according to Glassnode. Similar aggressive buying trends by sharks also occurred in 2011 and 2012 before major price increases.

At the same time, large holders, or whales, with balances exceeding 10,000 BTC have been selling substantial amounts throughout the last two months. This selling pressure from long-term holders is preventing a price rebound, highlighting an imbalance between buying and selling forces. According to Glassnode data, this trend has resulted in increased supply coming from these “OG” whales.

Capriole Investments founder Charles Edwards noted on social media: “While institutional buying on Coinbase has reached unprecedented levels (Z-score 15.7), it is being absorbed by ‘OG’ whales and long-term holders selling at rates not seen in years (Hodler Growth Rate at 0.6th percentile).” He further explained that price gains may be constrained until these older coins’ heavy distribution decreases.

Adding to the cautious outlook, veteran trader Peter Brandt pointed to Bitcoin’s recent drop below its parabolic support level, which historically has led to price declines of around 80%. This pattern indicates potential for significantly lower prices if it repeats.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, accuracy, completeness, or reliability of any information is not guaranteed. The article may contain forward-looking statements subject to risks and uncertainties.

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