every one has the plan they're working with and that's what generally determine when they buy or sell  Bitcoin. The big whales or huge holders are probably institutions, government or individual that are very Bouyant financially. For them, thier Bitcoin holdings serves as a reserve that stores thier wealth and so they can afford to keep holding and not sell it too soon regardless of being in profit. The small scale Bitcoin holders are mostly into trading and takes out profit at any slight opportunity but still reinvest it into Bitcoin again. They are the reason for the daily buys and sells of Bitcoin that makes it volatile. Also, Bitcoin is not just a store of value but is also a medium of exchange. People still make use of it for transactions and for making payment. A typical case is what's happening in the forum where campign managers moves Bitcoin week after week into different wallets of participant of a particular campaign. The block will record it as a sell and you might think the holders of the escrew isn't wise for not holding the Bitcoin. The purpose in that context is for payment of campaigners and that also happens in different areas and form. This is just my thought on this.

Simply because they don't trust in Bitcoin, they only try to earn quick profit from Bitcoin, usually they trade using high leverage, that's why small price movement can affect a lot to their portfolio.

Whales is already rich, they don't have to looking for fast profit because they already have many source of incomes. Whales treat Bitcoin and any other assets as investment, while the poor treat Bitcoin as a way to change their life.

Everyone (investors) is not the same and doesn't have the same occupation, pocket size and financial status. I know someone who is a trader, makes more than $5k every month, also there's someone that receives about $1k as salary every month, that's to say that people have different financial status and for people that is not earning big, they tend to only invest a small amount that they can risk to lose or sell when the market is going against them. You can't blame them, some of them doesn't also have enough knowledge about Bitcoin investment.

I think it is because small scale holder are usually newbies and as we all know, newbies are very prone to panic. In fact, panicking newbies is the profit scheme traders. When someone loses, someone else wins.

But usually the newbies learn their lesson. I remember when I was a newbie and panic sold every so often during volatile, scary market moments.

I like to view the losses as "education fees". So if anyone panic sells, don't feel bad, just learn something out of it.

Small scale Bitcoin holders panic and sale for two reasons one is because of lack of proper knowledge about how Bitcoin works, when they notice the value of their BTC decreasing on the Blockchain, they will naturally panic. It takes knowledge and experience of how Bitcoin works not to panic and sale when because they will think that the their BTC will soon vanish. Proper knowledge will make a hodler to understand about pump and dump that after dip price will recover and increase.

Another reason why small scale Bitcoin holders will panic to sale is because of lack of money, somebody who depends on the profits of Bitcoin investment to survive will naturally panic and sale when it begins to dip. Unlike the whales who are very rich and are not bothered about dip because they are holding for long term until they are prepared to offload their bags. Lack of money can make people to take rational decisions to sale and survive, not that they don't know that it's better to keep holding their Bitcoin for long term.

It’s part of human psychology I guess, people panic when they think they are making losses. It will never stop & it’s not only Bitcoin, weak hands exist in all areas of investing. Short term price movements are just noose, hold your bags & don’t get shaken out. The price will rise in Q4, do not worry.

There must be more than just one reason. But I'm sure there are many who sold not because of anything else but purely due to panic. The market can't shake them off for good. There will always be sheep and weak hands in the community who don't care whether they're losing for as long as they can escape what worse things might come next.

Aside from weak hands and panic-stricken sellers, there might also be others who are simply risk averse and who prefer to avoid risking further. We can understand them because they might not have much unlike those rich whales who can afford to absorb big losses.

The simplest reason is definitely a lack of knowledge. Small Bitcoin holders can be people who are new to Bitcoin and starting their investment. without a good understanding of the market, of course, seeing the value of their assets drop in large numbers creates panic. the worry is that the value will not be able to return.
Another reason is the need that forces investors to sell some of the Bitcoin they own even though the value is falling. we never know the difficult times that each person is going through.

Actually, novice investors must know that long-term Bitcoin investment will be more profitable. but for those who are less experienced, panic is natural in investing. you can plan your investment well, but when you are inexperienced, everything can mess up your plans.

That's exactly what I was thinking. It's just that some people are like that and that's all there is to it. They buy at highs and sell at a loss when it goes down because they get scared. Some can learn and change with time but there are people who get carried away by their emotions like that and there is no need to give it another thought.

They have weak hands mainly because they lack of knowledge and experience. Knowledge can be improved easily by learning and experience needs time of living in this market.

About knowledge, I can help them if they're ready for learning.

• Bitcoin price history, ATHs and bottoms.
• Bitcoin bull market drawdowns are helpful and very relevant to current period too.
  
  • https://studio.glassnode.com/workbench/bf532ce2-a66b-4798-6deb-bf3ba7decc59
  • https://cryptoquant.com/community/dashboard/650de954ca432c72d6ef82b1. Create an free account on Crypto Quant and get access to this dashboard.
  • https://charts.bitbo.io/price-drawdown-from-all-time-high/