Binance recorded its largest Bitcoin withdrawal in history when $816 million (58,861 BTC) was withdrawn in one day.
Binance recorded the largest Bitcoin Bonanza recall in history on November 3rd, according to CryptoQuant. A total of 58,861 BTC were withdrawn in a single day, equivalent to USD 816 million.
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The significant increase in withdrawals could suggest two things. First, it could indicate that the whales may be preparing for a short-term upturn. Second, there could have been an off-market sale (over-the-counter market transaction), which caused the whales to move their funds.
Bitcoin withdrawals at Binance. Source: CryptoQuant.com
Chain activity highlights movements of Bitcoin whales
In addition to the unprecedented increase in withdrawals at Binance, whales are increasingly moving their funds.
Researchers at Whalemap, a chain marketing analysis company that tracks Bitcoin whale activity, said they detected high-volume movements. They explained:
“Chain activity is high. Large volumes of HODLers’ coins are moving in profit and going straight into the whales’ wallets.
When whales move their funds in profits they tend to send them to other whale wallets rather than to exchanges, this often indicates that the whales anticipate an upward trend.
Bitcoin whale groups. Source: Whalemap.io
Whales and high-net-worth investors generally store their funds in non-custodial portfolios. These are addresses over which holders have full control and are usually kept offline for security reasons.
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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 upward trend, Whalemap analysts wrote
“Let’s take a look. In our opinion, this bubble should be a strong level for us for some time to come.
There are three possible reasons why whales may be increasingly withdrawing their funds from exchanges.
First, the appetite for selling Bitcoin above $13,000 has diminished. In longer time frames, such as the weekly and monthly charts, BTC has seen a clean break. Above the $14,200 level, there’s little resistance to the all-time high of $20,000.
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Second, there are large groups of whales above the $13,000 level, particularly in the range of $13,000 to $13,300. Whales can be sure that a large drop won’t occur as a result.
Thirdly, there could be a growing demand for off-market sales, as whales seek liquidity outside the exchanges to sell large amounts of currency. Since exchanges could trigger massive volatility, the over-the-counter market could be practical for major sales.
The range of USD 13,850 to USD 14,100 is the critical resistance zone
Bitcoin has been re-testing the USD 13,850 to USD 14,259 in the last 24 hours, despite the risk of US elections inducing volatility. The price briefly reached $14,066 on November 4 before quickly falling to $13,525 and in the last hour the price of Bitcoin reached a new annual high of $14,259.
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The ideal scenario for Bitcoin in the short term is to stay above USD 13,850 and remain stable above this level. This would indicate that BTC turned a significant resistance level into support, which would provide a more solid base for a sustainable rally.
Until BTC holds convincingly above USD 13,850 and consolidates below the USD 14,200 level, it is still at risk of a small decline.