Bitcoin Whale Faces $10.5 Million Loss After Selling 500 BTC

Bitcoin Whale Faces $10.5 Million Loss After Selling 500 BTC – Here’s What to Know

Bitcoin (BTC) recently showed some movement after recovering from its dip to $80,000 and briefly reaching a peak of $93,000. However, it has struggled to maintain this upward trend. Currently, BTC remains below its 20-, 50-, 100-, and 200-day Moving Averages, indicating significant bearish momentum in the market. Amid this slowdown, many investors, especially large holders known as "whales," are reconsidering their positions out of fear of further losses.

Key Takeaways

A Bitcoin whale sold 500 BTC for $45.37 million and incurred a loss of $10.5 million.
This whale's initial investment was at a higher price, purchasing the BTC at $111,899.
Short-term holders have seen losses, and long-term holders are also selling at a loss.
While many are selling, MegaWhales are accumulating Bitcoin, seeing it as undervalued.
The current market indicators suggest continuing downward momentum, with potential support around $86,497.

Bitcoin Whale Dumps 500 BTC Realizing $10mln in Losses: What About Price?

A Bitcoin Whale Faces a $10.5 Million Loss

According to data from Lookonchain, a Bitcoin whale recently sold 500 BTC for $45.37 million in a move to minimize losses, ultimately facing a loss exceeding $10.5 million. This whale had previously bought the BTC in October, withdrawing the amount from Binance at a total value of $55.95 million when prices were at $111,899. As the market continued to decline, BTC prices dropped below $80,000, leading the whale to face unrealized losses that peaked at over $20 million.

Bitcoin whale transaction

As Bitcoin trades around $90,000, the whale opted to sell, anxious about the potential for further losses. Notably, this scenario isn't unique, as both short- and long-term Bitcoin holders are experiencing financial setbacks. Checkonchain reveals that short-term holders experienced realized losses amounting to 10,200 BTC, while long-term holders recognized losses of 2,237.15 BTC.

Bitcoin Realized loss by cohort

MegaWhales Hold Steady

In a contrasting trend, while many market players are capitulating and selling at a loss, "MegaWhales" are taking this opportunity to acquire Bitcoin at lower prices. Reports show a notable increase in MegaWhale balances, with their holdings exceeding 100,000 BTC for the past three days. As of this writing, this group’s balance change is around 103,000 BTC, showcasing strong accumulation that suggests they perceive Bitcoin as undervalued.

Bitcoin megawhales

Will Bitcoin Recover by December?

Clearly, Bitcoin has struggled to uphold its upward trajectory amid intensified selling pressure across the market. The current metrics point to this trend, as evidenced by the Negative Index (-DI) of the Directional Momentum Index (DMI) remaining high. As of now, DI is at about 41, with D+ at around 16.

BTC DMI

Such positions typically indicate a strong bearish trend, suggesting that if the selling continues, BTC may breach the $90,000 mark and find support around $86,497. Conversely, should MegaWhales successfully absorb selling pressure, Bitcoin could retest the EMA20 at $92,942 and aim for the EMA50 at $100,131.

Final Thoughts

As the cryptocurrency market continues to evolve, the dynamics between sellers and buyers—especially among whales—remain critical in determining Bitcoin's price movements. The recent selling by some whales juxtaposed with MegaWhales’ accumulation offers insight into varying market sentiments and potential future trends.