Bitcoin panic selling is over: whales bought the bottom and reversed the market
The Bitcoin (BTC) market has experienced a classic capital redistribution cycle: panic selling by weak hands has been fully absorbed by institutional and large holders. On-chain data analysis indicates that the sell-off wave that lasted from June 1 to June 4 has been completely exhausted, and whales have reversed their supply dynamics upward, triggering a powerful price rebound above the $65,700 mark.
Three Phases of Market Manipulation: From Panic to Consolidation
Phase 1 (June 1–4): Capitulation. A sharp surge in the inflow of "old" coins to exchanges, measured by the Inflow CDD (Coin Days Destroyed) metric, reached 2.16 million. This indicator tracks the movement of long-dormant coins, a classic signal of panic selling. The result was a price crash from $71,300 to $63,800.
Phase 2 (June 5–10): Accumulation at the Bottom. When the price hit a local low around $61,400, whales stepped in. During this period, over 11,400 BTC (equivalent to ~$700 million) were withdrawn from exchanges to cold wallets, confirmed by a Negative Netflow. The key indicator — the Exchange Whale Ratio — surged to 62.3%, showing that large players were actively absorbing liquidity, soaking up retail traders' sales.
Phase 3 (June 11–14): Reversal and Shortage. After sellers dried up, the market faced an acute supply shortage. The Inflow CDD metric plummeted from 2.16 million to nearly zero (to 33,000), signaling a complete halt in sell-offs by long-term holders. This created ideal conditions for a reversal: on June 14, the aggregate supply of whales (wallets with a balance of 100 BTC or more) officially began to rise, instantly triggering a BTC rebound to $65,700.
Why the Bottom Proved Resilient
The main takeaway from this episode is that the capital shift from less resilient holders to large hodlers is fully complete. Whales have cemented the $60,000–$61,500 range as a solid price floor. Exchange reserves are depleted, and accumulated coins are moving into long-term storage. The path of least resistance for Bitcoin is now upward.
Analyst Commentary: This cycle is a perfect example of how institutional money uses panic to build positions. From a macro-structural perspective, we are witnessing not a short-term technical bounce, but a shift in the market's very structure. If whales continue to hold supply, the $65,000–$68,000 zone will become a new base for consolidation, and a breakout above it will set the stage for testing all-time highs.