Newbie Bitcoin Whales Capitulating, But Old Hands Stay Silent
Analysis
Price Impact
MedNewbie bitcoin whales are capitulating by realizing losses, indicating panic selling from less experienced investors during recent price declines. old whales, typically more resilient, remain largely at the sidelines with minimal selling, suggesting a lack of strong conviction to buy the dip or sell off heavily. this mixed signal creates uncertainty but the capitulation of newer holders can signal a short-term bottoming process.
Trustworthiness
HighThe source explicitly states a 'strict editorial policy that focuses on accuracy, relevance, and impartiality,' content 'created by industry experts and meticulously reviewed,' and adherence to 'the highest standards in reporting and publishing.'
Price Direction
NeutralThe capitulation of newbie whales can lead to short-term bearish pressure as they exit the market. however, the muted response from old whales means there isn't significant bullish or bearish momentum from major holders. while bitcoin has recovered to $92,300, the underlying whale behavior suggests a period of consolidation or potential for further volatility as strong directional conviction is absent, especially with a resistance level around $104,000.
Time Effect
ShortThe current capitulation from new whales usually indicates a short-term shakeout of weak hands. however, the lack of significant accumulation or aggressive selling from old whales means that a clear, sustained price direction might not materialize immediately and could last for a few weeks.
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Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. On-chain data shows New Whales on the Bitcoin network have been realizing losses recently, while Old Whales have remained at the sidelines. Bitcoin Has Faced Loss Selling From The Newbie Whales In a new post on X, CryptoQuant community analyst Maartunn has talked about the latest trend in the profit/loss realization behavior of the Bitcoin whales. “ Whales ” broadly refer to the BTC investors that hold at least 1,000 tokens in their balance. Related Reading Bitcoin Puell Multiple Plunges, But Not Inside Bottom Zone Yet 16 hours ago At the current exchange rate, the cutoff for the cohort is equivalent to $91.6 million, which is quite significant. As such, this group represents the big-money hands of the market, who can carry some degree of influence. Whales can be divided into two subgroups based on holding time. Investors of this size who purchased their coins within the past 155 days are known as the short-term holder (STH) or New Whales. Similarly, whales with a longer holding time are called the long-term holder (LTH) or Old Whales. Now, here is the chart shared by Maartunn that shows the trend in the net amount of profit/loss that these Bitcoin whale groups have been realizing through their selling over the last few months: The value of the metric appears to have been negative for the two cohorts in recent days | Source: CryptoQuant on X As displayed in the above graph, the Bitcoin New Whales have shown some loss realization spikes recently. This underwater selling from the cohort has come as the cryptocurrency’s price has gone through a decline. The New Whales include the inexperienced hands of the market who tend to easily panic in the face of volatility. It would appear that this quality of the group has held through the latest crash as well. The Old Whales, on the other hand, are considered to represent the resolute side of the network. From the chart, it’s visible that there has been some loss selling from these large dormant entities recently, but its scale has been small compared to the New Whale capitulation. Related Reading Bitcoin Could Be At Risk Of A Deeper Bear If This Ratio Compresses, Says Glassnode 21 hours ago The fact that the presence of the Old Whales has been relatively muted through the bearish shift, as well as the rebound that has followed, could be a signal worth keeping an eye on. Speaking of the recovery, the Bitcoin rally has meant that its price has climbed back above a major on-chain cost basis level. As analyst Ali Martinez has shared in an X post , the Bitcoin UTXO Realized Price Distribution (URPD) suggests a strong amount of buying last occurred at $84,500. A resistance level seems to be located around $104,000 | Source: @ali_charts on X In on-chain analysis, strong demand zones below the spot price are considered points of potential support for Bitcoin. Similarly, levels above are assumed to be sources of resistance instead. One such major level is present at $112,300. BTC Price Bitcoin’s recovery has furthered during the past day as its price has returned to $92,300. The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView Featured image from Dall-E, Glassnode.com, chart from TradingView.com