According to CryptoQuant data, Binance experienced the largest Bitcoin (BTC) outflow in history on November 3. In just one day, 58,861 BTC were withdrawn, which is equivalent to $ 816 million.
A significant increase in churn may indicate two things. First, it can show that whales can quickly prepare for a meeting. Second, an over-the-counter reception could have occurred that caused the whales to move their money.
The increased activity on the chain marks the movements of the Bitcoin whale.
Aside from Binance’s unique churn increase, whales are increasingly working to move their money.
Significant quantities have been found in the chain that tracks the activity of bitcoin whales, according to researchers at Whalemap, a market analysis company. Analysts explained:
“The chain is very active. Significant quantities of HODLer coins are profitable and go straight to the whale books. ”
When money from puppies goes to other whale numbers instead of exchanges, it often indicates that the whales are expecting an upward trend.
Whales and wealthy investors tend to keep their money in insecure wallets. These are addresses over which the owners have direct control and are usually disabled for security reasons.
Thus, whales tend to transfer their money to stock exchanges when they are preparing to sell their stake. If churn increases, it means that the whales are not going to sell in the short term.
In response to questions about whether recent whale activity indicates an upward trend, Whalemap analysts wrote:
“Let’s watch. In my opinion, this bubble should be a strong level for us for a while. ”
There are three possible reasons why whales are increasingly withdrawing their money from stock exchanges.
First, the desire to sell Bitcoin was higher than $ 13,000 lower. On higher timeframes, such as weekly and monthly charts, BTC experienced a clean breakout. Above $ 14,200, there is little resistance to the $ 20,000 all-time high.
Second, there are large groups of whales that cost over $ 13,000, especially in the $ 13,000 to $ 13,300 range. The whales can rest assured that there will be no significant decline as a result.
Third, there may be increased demand for OTC agreements as whales seek OTC liquidity for large orders. Since exchanges can cause tremendous volatility, the OTC market can be convenient for large trades.
The $ 13,850 to $ 14,100 range is the critical resistance range.
Bitcoin has tested $ 13,850 to $ 14,259 in the past 24 hours, despite the risk of volatility in the US election. The price briefly surged to $ 14,066 on November 4 and then quickly dropped to $ 13,525, and in the last hour, Bitcoin reached a new 2020 high of $ 14,259.
The ideal scenario for Bitcoin in the short term is to stay above $ 13,850 and remain stable above that level. This could indicate that BTC has changed an important resistance level as support, which provides a more solid foundation for the ongoing meeting.
Until BTC stays convincingly above $ 13,850 and solidifies below $ 14,200, there is still the risk of a slight pullback.