Even after rebounding from $80k dip and briefly touching a local high of $93k, Bitcoin [BTC] has failed to sustain an upward momentum.
In fact, BTC has remained below its 20-, 50-, 100-, and 200-day Moving Averages, reflecting intense bearish pressure.
On the back of this market slowdown, investors, especially whales, have capitulated, fearing potentially more losses.
A Bitcoin whale realizes $10.5M loss!
According to Lookonchain, a whale sold 500 BTC worth $45.37 million to cut his losses, losing over $10.5 million in the process.
This whale attempted to buy the dip in October, withdrawing 500 BTC, worth $55.95 million at $111,899, from Binance.
However, the prices continued to decline, and BTC later fell below $80,000. At some point, the whale was sitting on unrealized losses of over $20 million.
Source: Lookonchain
Now that BTC is hovering around $90k, the whale decides to offload at a loss, fearing further losses.
Interestingly, this is not an isolated case, as Bitcoin holders, both Short- and long-term, have continued to sell at a loss.
According to Checkonchain, Short-term holders realized losses jumped to 10.2k BTC, while LTHs realized a loss of 2,237.152 BTC.
Source: Checkonchain
In fact, long-term holders have realized losses throughout 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 jumped to mid-October levels, holding above 100k BTC for three consecutive days. At the time of writing, the cohort balance change stood at around 103k, indicating aggressive accumulation by the cohort.
Source: Checkonchain
Such a sustained appetite from the group shows strong bullish sentiment, as they currently view Bitcoin as undervalued.
Is there light for BTC going to 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 elevated. At press time, DI held around 41, while D+ hovered around 16.
Source: TradingView
Typically, when these indicators are set this way, it signals strong downward momentum, suggesting the current trend may continue.
Therefore, if holders continue selling at a loss, BTC will breach $90k and find support around $86,497.
However, if MegaWhales accumulation absorbs the rising sell pressure, Bitcoin will retest EMA20 at $92,942 and target EMA50 at $100,131.
Final Thoughts
- Bitcoin whale dumps 500 BTC for $45.37 million, realizing $10.5 million in losses.
- Megawhales continue accumulating, giving Bitcoin a foothold into December.