Binance saw its largest outflow of Bitcoins in history, after US$816 million (BTC 58,861) was withdrawn in one day.
Binance saw its largest Bitcoin (BTC) outflow in history on November 3, according to CryptoQuant data.
A total of 58,861 BTC were withdrawn in a single day, equivalent to US$816 million.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.
Increases in chain activity highlight the movements of Bitcoin whales
In addition to the unprecedented increase in Crypto Profit outflows, whales are increasingly moving their funds.
Researchers at Whalemap, an online market analysis company that tracks Bitcoin whale activity, said that 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 at a profit to other whale portfolios instead of purses, this generally indicates that whales predict an upward trend.
Whales and high net worth investors usually store their funds in portfolios without custody. These are the addresses over which 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 view, 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 $13,000 has become lower. At higher maturities, such as weekly and monthly charts, BTC had a clear break. Above US$ 14,200, there is little resistance up to a maximum of US$ 20,000.
Second, there are large clusters of whales above US$ 13,000, particularly in the US$ 13,000 to US$ 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 deals, as whales seek liquidity outside large order exchanges. Since exchanges can trigger massive volatility, the over-the-counter market may be practical for large trades.
The range of US$ 13,850 to US$ 14,100 is the critical resistance zone
Bitcoin has again tested between US$13,850 and US$14,259 in the last 24 hours, despite the risk that the US elections will lead to volatility. The price rose briefly to US$14,066 on 4 November, before falling rapidly to US$13,525, and at the last minute, the Bitcoin price reached a new 2020 record of US$14,259.
The ideal scenario for Bitcoin in the short term is to stay above US$ 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 US$ 13,850 and consolidates below US$ 14,200, it remains at risk of a small setback.