Bitcoin: Weaker hands panic as BTC dips, but whales dive in

Key takeaways

Bitcoin’s recent dip triggered panic selling from mid-term holders, but whales and sharks are buying aggressively. This shows long-term confidence, even as short-term momentum cools.

Bitcoin’s [BTC] latest dip has once again split investors into two camps.

While mid-term holders from the 2021 cycle rushed to sell, big players have been quietly buying the drop.

In just a week, wallets holding 10 to 10,000 BTC scooped up over 20,000 coins, so the long-term outlook remains strong even as weaker hands panic.

Bitcoin: Selling fear, not strength

The 3-5 year age band, mostly made up of investors who entered during the 2021 bull run, has shown weaker conviction than expected. Though often grouped under LTHs, their actions reveal a different story.

Source: CryptoQuant

Instead of taking profits during local tops, many have sold into dips, amplifying market corrections.

This behavior is a sign of relative inexperience, as true LTHs are typically those who withstand at least two full cycles.

Interestingly, past capitulation from this group has preceded sharp rebounds, so their weakness may actually cause strength.

Whales and sharks keep buying the dip

Despite last week’s 6.22% pullback from the ATH, Bitcoin’s largest investors remained unfazed.

Wallets holding between 10 and 10,000 BTC (often referred to as whales and sharks) added another 20,061 coins during the dip. When viewed in a broader context, their accumulation has been even more striking.

Since late March, this group has increased their collective holdings by 225,320 BTC.

Source: Santiment

Movements from these wallets have usually aligned closely with Bitcoin’s long-term price direction, so big-money investors see the recent sell-off as an opportunity rather than a setback.

Bitcoin’s trajectory remains intact.

Bitcoin sees cooling momentum

At press time, Bitcoin traded near $115,092 after slipping further from its mid-August highs.

There was consistent selling pressure, with bears maintaining control following the sharp drop from above $120,000. The RSI hovered just above neutral at 54, while the MACD showed bearish divergence.

Source: TradingView

Despite the pullback, the correction remained relatively modest in the context of Bitcoin’s broader rally. With whale accumulation still strong, the dip is a period of consolidation.