Bitcoin’s price may appear stable, but behind the scenes, key market dynamics are rapidly shifting. New data from Glassnode reveals a widening gap between large and small BTC holders, signaling potential buyer fatigue and a looming trend reversal.
Bitcoin Whales Bet Big
Large investors, or “whales,” holding over 10,000 BTC, are showing unwavering confidence in Bitcoin’s long-term potential.
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Their accumulation score has surged to 0.95, reflecting peak levels of confidence even amid market uncertainty, says on-chain data and analytics from Glassnode.
Meanwhile, mid-tier investors or those with 1,000 to 10,000 BTC are maintaining steady accumulation scores around 0.8 to 0.9. This means they are gradually increasing their holdings, and their interest in Bitcoin remains strong.
Retail Exits
Meanwhile, the smaller holders, or wallets up to 10 BTC, are growing cautious. Their accumulation score remains at 0.3, indicating that they are either selling off their holdings or refraining from buying.
Glassnode’s analysis suggests that the accumulation trend is “spreading top-down,” with larger investors doubling down while smaller holders exit, possibly in fear of volatility or to take profits.
Spot Market Weakens
The divergence between whales and retail coincides with a decline in Bitcoin’s spot market.
Over the past three days, Bitcoin’s 7-day spot volume delta has turned sharply negative, from -$30.9 million on April 27 to -$193.4 million on April 29, according to Glassnode.
Aggressive selling is overtaking buying, and spot demand is weakening, raising concerns about potential profit-taking, buyer exhaustion, or an impending reversal, the analysts note.
Adding fuel to the fire, Glassnode’s Profit Taker RSI has surged to 82, signaling a significant uptick in realized profits and growing sell-side pressure, typically seen in overheated market conditions.
The growing disparity between large holders and retail investors, coupled with shrinking spot demand and rising sell-side pressure, suggests that Bitcoin may be in the midst of a distribution phase.
As of writing, Bitcoin (BTC) is trading around $94.3K, reflecting a modest weekly gain of 0.26%. Meanwhile, the Bitcoin dominance index has surged 2.35% today, climbing to 63.8%, a level not seen since 2021.
Why This Matters
As retail distribution accelerates and market sentiment weakens, Bitcoin’s (BTC) price next move could be crucial, with the dominant crypto potentially entering a short-term topping phase.
