Whales take US$ 816 million in Bitcoin from Binance and break a record – are we ready for a rally?
Binance saw its largest Bitcoin outflow in history, after US$ 816 million (58,861 BTC) was withdrawn in one day.
Binance saw its largest Bitcoin Circuit scam output stream in history on November 3rd, according to CryptoQuant data.
A total of 58,861 BTC was withdrawn in a single day, equivalent to US$ 816 million.
The significant increase in withdrawals may suggest two things. First, it may show that whales may be preparing for a rally in the short term. Second, an over-the-counter deal could have occurred, causing the whales to move their funds.
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BTC output flow at Binance. Source: CryptoQuant.com
Increases in chain activity highlight the movements of Bitcoin whales
In addition to the unprecedented increase in Binance outflows, whales are increasingly moving their funds.
Researchers at Whalemap, an online market analysis company that tracks Bitcoin whale activity, said large volumes were detected. The analysts explained:
„Network activity is high. Large volumes of HODLer currencies are moving profitably and going straight to the whales‘ portfolios. ”
When whale funds are moved in profit to other whale portfolios instead of purses, this generally indicates that whales foresee an upward trend.
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Bitcoin Whale Clusters.
Whales and high net worth investors usually store their funds in portfolios without custody. These are the addresses over which the owners have direct control, which are usually kept offline for security purposes.
Consequently, whales tend to transfer their funds to exchanges when they are preparing to sell their funds. If the outflows increase, this means that the whales do not intend to sell in the short term.
In response to questions about whether recent whale activity indicates an upward trend, Whalemap analysts wrote:
„Let’s see. In my opinion, this bubble should be a strong level for us for some time.“
There are three possible reasons why whales are increasingly withdrawing their funds from the exchange.
First, the appetite to sell Bitcoin above $13,000 has become lower. At higher maturities, such as weekly and monthly charts, BTC had a clear break. Above $14,200, there is little resistance up to a maximum of $20,000.
Second, there are large clusters of whales above $13,000, particularly in the $13,000 to $13,300 range. Whales can be confident that a large drop will not occur as a result.
Third, there may be a growing demand for over-the-counter business, as whales seek liquidity outside of large order exchanges. Since exchanges can trigger massive volatility, the over-the-counter market can be practical for large businesses.
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The range of US$ 13,850 to US$ 14,100 is the critical resistance zone
Bitcoin has tested again between $13,850 and $14,259 in the last 24 hours, despite the risk of U.S. elections inducing volatility. The price rose briefly to $14,066 on November 4, before falling rapidly to $13,525 and in the last hour, the Bitcoin price reached a new 2020 record of $14,259.
The ideal scenario for Bitcoin in the short term is to stay above $13,850 and remain stable at the top of this level. This would indicate that BTC has converted an important level of resistance into support, which would provide a stronger foundation for a sustainable upswing.
Until BTC remains convincingly above $13,850 and consolidates below $14,200, it remains at risk of a small setback.