Even after Bitcoin recovered from an $80,000 dip and briefly hit a local high of $93,000 [BTC] has failed to maintain upward momentum.
In reality, BTC has remained below the 20-, 50-, 100-, and 200-day moving averages, reflecting intense bearish pressure.
As a result of this market slowdown, investors, especially whales, have capitulated, fearing potentially more losses.
A Bitcoin Whale Realizes a $10.5 Million Loss!
According to Look at chaina whale sold 500 BTC worth $45.37 million to cut his losses, losing more than $10.5 million in the process.
This whale tried to buy the dip in October by withdrawing 500 BTC, worth $55.95 million at $111,899, from Binance.
However, prices continued to fall and BTC later fell below $80,000. At one point the whale was experiencing unrealized losses of more than $20 million.
Source: Lookonchain
With BTC hovering around $90,000, the whale decides to unload at a loss, fearing further losses.
Interestingly, this is not an isolated case as Bitcoin holders have continued to sell at a loss, both in the short and long term.
According to Checkonchain, short-term holders realized losses that increased to 10.2k BTC, while LTHs realized a loss of 2,237,152 BTC.
Source: Checkonchain
In fact, long-term investors suffered losses in November, reflecting the long duration of the bearish trend.
MegaWhales refuse to budge
Significantly, while most market participants are capitulating and selling at a loss, MegaWhales have taken the opportunity to accumulate at a discount.
In fact, MegaWhale’s balance change has risen to mid-October levels, with BTC’s value remaining above 100,000 for three consecutive days. At the time of writing, the change in cohort equilibrium was approximately 103,000, indicating aggressive accumulation by the cohort.
Source: Checkonchain
Such continued appetite from the group shows strong bullish sentiment as they currently view Bitcoin as undervalued.
Is there light for BTC towards December?
Undoubtedly, Bitcoin has failed to maintain its upward momentum due to increased selling pressure from all market participants.
As a result, the negative index (-DI) of the Directional Momentum Index (DMI) has remained high. At the time of writing, DI was around 41, while D+ hovered around 16.
Source: TradingView
When these indicators are identified in this way, it usually indicates strong downward momentum, suggesting that the current trend could continue.
Therefore, if holders continue to sell at a loss, BTC will cross $90,000 and find support around $86,497.
However, if MegaWhales’ accumulation absorbs rising selling pressure, Bitcoin will retest the EMA20 at $92,942 and target the EMA50 at $100,131.
Final thoughts
- Bitcoin whale dumps 500 BTC for $45.37 million and realizes $10.5 million in losses.
- Megawhales continue to accumulate, giving Bitcoin a foothold in December.