Record of USD 816 million in Bitcoin leaves Binance – are whales preparing for a rally?

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According to data from CryptoQuant, Binance recorded the largest outflow of Bitcoin (BTC) in history on November 3rd. In a single day, a total of 58,861 BTC were withdrawn, equivalent to $ 816 million.

The significant increase in outflows could suggest two things. First, it could show that whales could prepare for a rally in the short term. Second, there could have been an over-the-counter deal with whales moving their money.

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Bitcoin is flowing into Binance. Source: CryptoQuant.com

Boosts of activity in the chain highlight the movements of the Bitcoin whales

In addition to the unprecedented surge in runoff on Binance, whales are increasingly moving their funds.

Researchers at Whalemap, an on-chain market research firm that tracks the activity of Bitcoin whales, said large amounts were discovered. The analysts stated:

“Activity in the chain is high. Large quantities of HODLer coins generate profit and flow straight into the whales’ wallets. “

Often times, when whale funds turn their profits into other whale wallets rather than exchanges, it often suggests that whales are expecting an upward trend.

Bitcoin whale cluster. Source: Whalemap.io

Whales and high net worth investors typically store their funds in unprotected purses. These are addresses over which owners have direct control and which are usually kept offline for security reasons.

Hence, whales tend to transfer their money to exchanges as they prepare to sell their stocks. If the outflows increase, it means whales have no intention of selling in the short term.

In response to the question of whether recent whale activity suggests an upward trend, analysts at Whalemap wrote:

“Let’s see. I see that this bubble should be a strong level for us for some time.”

There are three possible reasons why whales are increasingly removing their money from the exchanges.

First, the appetite to sell Bitcoin above $ 13,000 has decreased. In higher time periods like the weekly and monthly charts, BTC has seen a clean breakout. There is little resistance above $ 14,200 until the all-time high of $ 20,000.