Analyst: The current on-chain behavior of BTC shows a typical end-of-cycle pattern, and this morning's sharp decline is attributed to liquidity and position adjustment events

As Bitcoin fell below the $86,000 mark on Monday morning, on-chain wallet behavior showed divergence: large holders slowed their accumulation pace, while small retail wallets accelerated their buying. Analysts warn that this pattern often signals increased market vulnerability in the later stages of the cycle.

On-chain data indicates that long-term holders and whale wallets have significantly slowed their accumulation in recent weeks, while small wallets holding less than 1 BTC are speeding up their bottom-fishing. BRN research director Timothy Misir pointed out that this divergence occurs at a delicate moment in market structure: "Whales slow down their buying while retail investors accelerate their accumulation—this is a typical late-cycle pattern that exacerbates short-term vulnerability. This morning's washout is a liquidity and position adjustment event; the market has not yet signaled a trend reversal but is showing signs of pressure." Timothy Misir added that short-term holders have realized a surge in losses during this round of selling, suggesting a "reset in sentiment." Balances on trading platforms and inflows of stablecoins indicate that the market still possesses some purchasing power, but there is also potential selling pressure in liquidity.