Bitcoin Whale And Retail 'major Divergence' Is A Warning Sign:...

Santiment said Bitcoin’s retail-whale divide is a flashing warning sign, while other analysts anticipate new highs on a macro rebound.

Bitcoin retail investors are snapping up Bitcoin as whales sell off, a pattern that could signal trouble for the asset’s price if history is any guide, according to sentiment platform Santiment.

However, other crypto analysts are divided on how the coming weeks will unfold for Bitcoin (BTC).

“Historically, prices tend to follow the direction of the whales, not retail,” Santiment said in a markets report on Saturday.

Santiment pointed out that since Oct. 12, Bitcoin whales — wallets holding between 10 and 10,000 BTC — have sold approximately 32,500 Bitcoin. However, Santiment added that “small retail wallets have been aggressively buying the dip.”

During that time, Bitcoin fell from $115,000 to $98,000 on Nov. 4, representing a decline of around 15%, according to CoinMarketCap. BTC’s price has since recovered to $103,780 at the time of publication.

Santiment described it as a “major divergence has appeared between large and small investors.” Santiment said:

Other analysts are divided on how the coming weeks will play out for Bitcoin.

Bitfinex analysts told Cointelegraph that they expect near-term consolidation and some volatility, rather than “a clear sprint to new highs.”

“We believe ETF inflows earlier in October pushed the price to around $125,000, before mid-month macro shocks, a major options expiry, and profit-taking knocked it back into the high $100,000s,” the analysts said.

Source: CoinTelegraph