Record: $816 million in Bitcoin was withdrawn from Binance, are the whales preparing for a bullish cycle?

Binance recorded its largest Bitcoin withdrawal in history when it withdrew USD 816 million (58,861 BTC) in one day.

Binance recorded the largest Bitcoin (BTC) withdrawal in history on Nov. 3, according to CryptoQuant. A total of 58,861 BTCs were withdrawn in a single day, equivalent to USD 816 million.

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.

Chain activity highlights movements of Bitcoin whales

In addition to the unprecedented increase in withdrawals at Binance the crypto superstar, 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 into profits they tend to send them to other whale wallets rather than to exchanges, this often indicates that the whales anticipate an upward trend.

Whales and high-net-worth investors generally store their funds in non-custodial wallets. These are addresses over which holders have full control and are usually kept offline for security reasons.

Therefore, whales tend to transfer their funds to exchanges when preparing to sell their holdings. If withdrawals increase, this means that 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 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 to sell Bitcoin above USD 13,000 has diminished. In longer time frames, such as the weekly and monthly charts, BTC has seen a clean break. Above the USD 14,200 level, there is little resistance to the historical high of USD 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 confident that a large drop will not occur as a result.

Thirdly, there could be a growing demand for off-market sales, as whales seek liquidity outside of 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 USD 14,066 on November 4 before falling rapidly to USD 13,525, and in the last hour Bitcoin’s price reached a new annual high of USD 14,259.

The ideal scenario for Bitcoin in the short term is to stay above USD 13,850 and remain stable above that level. This would indicate that BTC turned a significant resistance level into support, which would provide a more solid basis for a sustainable rally.

Until the BTC holds convincingly above USD 13,850 and consolidates below the USD 14,200 level, it is still at risk of a small decline.