Analyst: Current BTC on-chain behavior shows typical end-of-cycle patterns; this morning's plunge was a result of liquidity and position adjustments.
BlockBeats News, on December 1, as Bitcoin fell below the $86,000 mark in early Monday trading, on-chain wallet behavior showed divergence: large holders slowed down their accumulation pace, while small retail wallets accelerated their buying. Analysts warn that this pattern often signals heightened market vulnerability at the end of a cycle.
On-chain data shows that long-term holders and whale wallets have significantly slowed their accumulation in recent weeks, while small wallets holding less than 1 BTC are accelerating their bottom-fishing. BRN Research Director Timothy Misir pointed out that this divergence is occurring at a delicate moment in market structure: "Whales slowing down buying while retail investors accelerate accumulation—this is a typical end-of-cycle pattern, which will intensify short-term vulnerability. This morning's shakeout was a liquidity and position adjustment event. The market has not yet signaled a trend reversal, but pressure is already evident."
Timothy Misir added that short-term holders realized a surge in losses during this round of selling, suggesting a "sentiment reset." Exchange balances and stablecoin inflows indicate the market still has some purchasing power, but there is also potential selling pressure liquidity.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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