Despite the sharp rise in Bitcoin (BTC) in November, the price is consolidating above $ 15,000, according to network analyst Willie Wu, the top is unlikely to rise for three main reasons.

These three factors are the increasing flow of money from stock exchanges, the increase in the number of “dealers” and data showing that investors have actually made profits.

Bitcoin moves from exchanges to separate wallets
According to Glassnode, a large number of bitcoins left the central exchanges at the end of October.

Wu believes the figure is optimistic because it shows that investors are transferring money from trading platforms to personal portfolios. This indicates that users are holding their BTC with a long-term investment strategy.

Net Bitcoin is floated on exchanges. Source: Glassnode
The analyst noted that in the past five years, bitcoin has recorded the largest number of bitcoins withdrawn from exchanges in a single day. It is to explain:

“An absurd amount of coins were copied and moved to separate wallets. If you zoom out and look in perspective, this is the biggest daily result on the 5-year chart.”
The number of phishers is increasing
In the cryptocurrency market, long-term holders of Bitcoin are referred to by analysts as “HODLers”. They tend to have BTC for long periods, often over the course of a year.

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Before Bitcoin’s steep rally began, which has led to new multi-year highs, Wu said the number of Bitcoin HODLers has been increasing exponentially. It posted the biggest jump since October 2017, just a few months before BTC spiked to its highest level in December. Wu notes:

“Before this pump, the influx of new HODLers seen on the blockchain was massive. I repeat through the roof, I’m not kidding. This volume of uptake was last noticed in October 2017; it was a month before BTC entered the manic phase in 2017.”
The high number of HODLers is an important math because it shows the true detail requirements behind the trend. Bitcoin’s rally could be vulnerable to a significant downturn if driven primarily by the futures market.

Low risk of deep correction
Bitcoin’s SOPR (Profit Outcome Ratio) is an indicator that shows whether investors are making unrealized profits.

Glassnode data shows that few investors have made money in the past week. This indicates that the risk of a serious profit-taking withdrawal is lower, as investors have already started making their profits, as these currencies have been absorbed by the buyers in the market.

Bitcoin SOPR Index. Source: Glassnode
Based on the three data points, Wu confirmed that he had not seen the loudest explosion. The term “peak explosion” refers to a technical formation in which the price of an asset drops sharply after reaching a strong level of resistance. Wu wrote:

Overall conclusion: I did not expect an explosion. Waiting for the stabilization to complete, then a new bullish move. ”
In the short term, the risk of Bitcoin continuing to rally remains the crowded derivatives market. Hence, analysts are expecting some consolidation, but not a deep correction, at least for now.

Source: CoinTelegraph