Analyst: The current BTC on-chain behavior shows a typical end-of-cycle pattern, and this morning's big dump is due to liquidity and position adjustments.

On December 1st, as Bitcoin fell below the $86,000 mark in the Monday morning session, on-chain wallet behavior showed divergence: large holders slowed down their accumulation pace while small retail wallets accelerated their buying. Analysts warned that this pattern often indicates increased market vulnerability in the latter stages of the cycle. On-chain data shows that long-term holders and whale wallets have significantly slowed their accumulation speed in recent weeks, while small wallets holding less than 1 BTC are accelerating their buy the dip activities. BRN research director Timothy Misir pointed out that this divergence occurs at a subtle moment in the market structure: “Whales are slowing their buying while retail investors are accelerating their accumulation—this is a typical late-cycle pattern that exacerbates short-term vulnerability. This morning's liquidation belongs to liquidity and position adjustment events; the market has not yet sent a signal of trend reversal but is already showing signs of pressure.” Timothy Misir added that short-term holders have seen a surge in losses during this round of selling, suggesting a “sentiment reset,” while balances on trading platforms and stablecoin inflows indicate that the market still possesses some purchasing power, but there are also potential selling pressures in liquidity.