Bitcoin, the leading cryptocurrency, briefly recovered to $93,000 after plummeting to $80,000, yet failed to sustain this uptrend. The recent fluctuation around $90,000 highlights the ongoing selling pressure in the market. Technical indicators also reflect this weakness. Bitcoin trades below its 20, 50, 100, and 200-day moving averages, highlighting continued short to medium-term bearish pressure, especially as large investors (whales) resort to panic selling.
$10.5 Million Loss: Whales Give Up
On-chain analysis platform Lookonchain unveiled data emphasizing the market panic. A significant Bitcoin whale sold his 500 BTC for approximately $45.37 million, realizing a loss of over $10.5 million. This whale had initially acquired the Bitcoin in October at $111,899 each, paying about $55.95 million. As prices dropped below $80,000, the whale’s paper loss exceeded $20 million at one point.
Currently, with Bitcoin oscillating around $90,000, the investor decided to sell to avert further losses. This is not an isolated case. According to Checkonchain, short-term investors (STH) realized losses amounting to 10,200 BTC, while long-term investors (LTH) surpassed 2,237 BTC. Particularly in November, even long-term investors selling at a loss highlights the extended duration of the downtrend.
Mega Whales on the Scene: Turning Decline into Opportunity
Despite this atmosphere of surrender, not every major player reacts the same way. The largest wallets, known as “mega whales,” are using the selling waves as buying opportunities. The balance of mega whales has risen back to October mid-levels. This group accumulated over 100,000 BTC net for three consecutive days, with their net balance increasing by approximately 103,000 BTC. This behavior implies that these investors perceive current prices as attractive discounts and anticipate a rise in the medium to long term.
Technically, the direction has yet to become clear. The Directional Momentum Index (DMI) shows the negative directional indicator (-DI) at around 41, whereas the positive one (+DI) is only about 16. This indicates that the downward momentum remains strong, and selling pressure may persist. If losses continue to be realized, Bitcoin is expected to dip below $90,000, potentially finding support around $86,497. However, if the buying by mega whales absorbs the selling pressure, the price might first test the EMA20 at $92,942, with EMA50 at $100,131 as a subsequent target.
Additionally, there’s another development affecting the market. Spot Bitcoin ETFs traded in the U.S. have seen minor inflows recently. This indicates that the institutional appetite for buying at dip levels hasn’t entirely vanished. However, despite these ETF inflows, the absence of a strong rebound in the spot market suggests that investor confidence hasn’t fully returned yet.