[ad_1]
Binance recorded the largest Bitcoin (BTC) withdrawal in history on November 3, based on CryptoQuant data. A total of 58,861 BTC was withdrawn in a single day, equivalent to 816 million dollars.
The significant increase in withdrawals might suggest two things. First, it could signal that whales could be preparing for a rally in the near term. Second, an off-market sale (over-the-counter market transaction) may have occurred, which caused the whales to move the bottom.
Chain activity highlights Bitcoin’s whale moves
In addition to the unprecedented increase in withdrawals on Binance, whales are moving their funds more and more.
This was stated by researchers from Whalemap, an on-chain market analysis company that tracks Bitcoin whale activity they detected large volume movements. They explained:
“The activity of the chain is high. Large volumes of HODLers coins are moving into profit and going straight into whale wallets. “
When whales turn their funds into profit tend to send them to other whale portfolios rather than exchanges, this often indicates that whales anticipate an upward trend.
Whales and high net worth investors generally keep their funds in unsecured portfolios. These are addresses over which the holders have full control and are normally kept offline for security reasons.
Therefore, whales tend to transfer their funds to exchanges when preparing to sell their holdings. If withdrawals increase, it means that the whales do not intend to sell in the short term.
In response to questions about whether recent whale activity indicates an uptrend, analysts at Whalemap they wrote:
“Let’s see. In our opinion, this bubble should be a strong level for us for some time.”
There are three possible reasons why whales may increasingly withdraw their funds from exchanges.
First, the appetite to sell Bitcoins above $ 13,000 has decreased. Over longer time frames such as the weekly and monthly charts, BTC has seen a sharp breakout. Above the $ 14,200 level, there is little resistance at the all-time high of $ 20,000.
Second, there are large groups of whales above the USD 13,000 level, particularly in the USD 13,000 to USD 13,300 range. Whales can be sure that large falls will not occur as a result.
In third place, There may be a growing demand for off-market sales as whales seek out-of-the-box liquidity to sell large quantities of coins. Since the trades could trigger huge volatility, the OTC market could be useful for big sales.
The $ 13,850 – $ 14,100 range is the critical resistance zone
Bitcoin has retested from $ 13,850 to $ 14,259 in the past 24 hours, despite the risk of the US election inducing volatility. The price briefly reached $ 14,066 on November 4th before rapidly dropping to $ 13,525 and in the last hour the price of Bitcoin reached a new annual high of $ 14,259.
The near-term ideal scenario for Bitcoin is to remain above $ 13,850 and remain stable above this level. This would indicate that BTC has turned a significant resistance level into support, providing a firmer base for a sustainable rally.
Until BTC convincingly holds $ 13,850 and consolidates below the $ 14,200 level, it remains at risk of a small drop.
Keep reading:
[ad_2]
Source link
