Bitcoin Crash Watch: Whales Sell, Retail Buys as $42,000 Support Comes Into Focus

Bitcoin slid to $60,001, and on chain data shows big holders cutting exposure while small wallets keep buying dips. Meanwhile, trader Peter Brandt flagged the $42,000 area as a key support zone if the downtrend deepens.

Santiment data shows whales cut holdings as small wallets add Bitcoin

Bitcoin fell to as low as $60,001, its first drop to that level since October 2024, according to a post by crypto analytics firm Santiment.

Bitcoin Whales and Sharks vs Shrimp Wallets Supply Share. Source: Santiment

Santiment said “whale and shark” wallets holding 10 to 10,000 bitcoin now control 68.04% of the total BTC supply, a nine month low. The firm added that these wallets reduced holdings by about 81,068 BTC over the past eight days.

At the same time, Santiment said “shrimp” wallets holding less than 0.01 BTC increased their share to 0.249% of supply, a 20 month high. The firm said the rise signals continued dip buying by smaller holders.

Santiment said the combination of larger holders selling into retail buying has historically aligned with bear cycle conditions. The firm added that it expects larger holders to keep distributing until it sees what it described as clearer capitulation from the broader crowd.

Peter Brandt chart points to $42,000 as next major support if Bitcoin keeps sliding

Meanwhile, veteran trader Peter Brandt said Bitcoin could drift toward the $42,000 area if the current selloff follows the depth of earlier bear market cycles.

In a post on X, Brandt framed the move as a “banana peel” phase, his label for a pullback that slides down into a lower trend band before price stabilizes. He said that if Bitcoin “digs into” that zone as deeply as it did in past down cycles, bulls “should not need to suffer too far south of $42,000.” He added that price is “a hop, skip and jump” from that level, suggesting the downside target sits relatively close on the broader chart.

Bitcoin U.S. Dollar Monthly Chart. Source: Peter Brandt via TradingView

The TradingView snapshot shows Bitcoin on a monthly timeframe inside a long rising channel. The lower green band acts as the main support guide in the model, while the upper red band marks the resistance ceiling that capped prior peaks. The chart also highlights prior cycle drawdowns that dipped into the lower band before recovering, which is the historical comparison Brandt used to argue that $42,000 could act as a floor area if the decline continues.