cryptopotato.com
The Bitcoin ($BTC) market’s supply dynamics are being reshaped, with on-chain data showing that large holders of the asset are selling off some of their stash, while mid-tier investors are buying more.
This transition is happening as $BTC trades near a long-term support zone, raising questions about whether its next move could be another leg higher or the start of a deeper correction.
Whales Retreat, Mid-Sized Players Step Forward
According to the data shared by analyst JA Maartunn, addresses with more than 1,000 $BTC are getting smaller, while wallets with between 100 and 1,000 $BTC are steadily getting bigger.
“Big Fish Down, Medium Players Up,” stated the market watcher on X, pointing to a supply redistribution from whales to smaller ETF custody accounts. This suggests institutional flows are gradually fragmenting among mid-sized entities rather than remaining concentrated with the largest holders.
At the same time, other traders are warning that Bitcoin has been in a “distribution phase” for more than two months. According to pseudonymous analyst Doctor Profit, heavy selling between $115,000 and $125,000 has consistently capped upward momentum, with whales and recently unlocked wallets offloading into rallies.
His cautious tone was reinforced by technical signals from a recent report by CryptoQuant expert CryptoOnchain, who highlighted $BTC’s test of a major ascending trendline that coincided with the realized price of new whales. He suggested that if the price goes below this zone, it could break the bullish structure and start a long-term drop.
Despite the selling pressure from whales, not all analysts believe the bull run is finished. A previous analysis argues that cycle peaks are typically accompanied by retail euphoria and overheated on-chain metrics, conditions that are not present today. Additionally, indicators like a low Reserve Risk score suggest long-term holders remain confident, and expanding global liquidity could provide further tailwinds for appreciation.
Prices Hold, But Momentum Looks Fragile
According to CoinGecko data, Bitcoin is now worth $111,902, a modest 0.8% uptick from 24 hours ago. The world’s number one cryptocurrency has been between $110,909 and $112,806 in the last day, which is not as steep compared to the previous week, when it dropped as low as $108,799.
On a seven-day basis, $BTC has gained 1.4%, while its two-week performance is slightly firmer at 1.8%. However, the bigger picture shows a 5.6% drop over the past month, a sign of cooling momentum after hitting its all-time high of $124,457 less than a month ago on August 14.
Year-on-year, the asset remains impressive with a 102.9% gain, even though its inability to retake the $115,000 to $125,000 band reflects the weight of ongoing profit-taking.