Bitcoin retail investors are increasing their purchases as whale investors liquidate their holdings, causing concern over potential price implications, according to the sentiment analysis platform Santiment. Despite this, some analysts express optimism for future price increases.

Historically, large holders of Bitcoin tend to influence market trends more than smaller retail investors. Santiment highlights this shift in behavior, noting a substantial sell-off by Bitcoin whales holding between 10 and 10,000 BTC, with approximately 32,500 BTC sold since October 12. In contrast, smaller retail investors have actively bought the dip.

Cautionary Signal from Divergence

During this period, Bitcoin’s price dropped from $115,000 to around $98,000 by November 4, reflecting a 15% decline. Following this decline, the price has since shown some recovery to $103,780.

“A divergence where whales are selling while retail is buying can be a cautionary signal,” said Santiment, warning of the different paths being taken by large and small investors.

Analysts from Bitfinex anticipate a phase of consolidation and volatility rather than a straightforward ascent to new peaks.

On a brighter note, if Bitcoin ETF inflows exceed $1 billion weekly and economic conditions improve, there’s a possibility for Bitcoin to approach $130,000.

In the meantime, Nansen’s senior analyst Jake Kennis pointed out that while Bitcoin has historically shown yearly gains, recent market disruptions make these gains less likely in the short term. He acknowledges, however, that significant upward movement remains a possibility as we approach the year’s end.