A huge amount of 19,197 BTC worth $652 million recently left Binance all at once, triggering a curious reaction from Bitcoin investors. The timing of the transfer is interesting as Bitcoin is currently trading within a range and looking to break the $35,000 resistance level.
The big question is whether the whale behind the transfer has plans to hold or sell, but recent price action points to the former.
Huge amount of BTC leaves Binance
Recent data has shown this Bitcoin trading volume on crypto exchanges recently reached its highest point since March trading activity increased in the entire crypto market. Whale activity in particular has grown exponentially.
Whale transaction tracker Whale Alerts has discovered several large Bitcoin transactions coming in and out of cryptocurrency exchanges. Most of these transactions are an exodus of BTC to cold or unknown wallets.
🚨 🚨 🚨 1,517 #BTC (52,009,789 USD) transferred from #Bybit to unknown wallethttps://t.co/4klCQQj5O8
— Whale Alert (@whale_alert) October 30, 2023
🚨 🚨 1,105 #BTC (USD 38,199,041) transferred from #BinanceUS to unknown wallethttps://t.co/NKzMkqT3Ce
— Whale Alert (@whale_alert) October 30, 2023
According to a post on social media platform This massive movement of digital currencies has prompted analysts to speculate about the implications.
JUST IN:
19,197 Bitcoin ($652 million) was withdrawn from Binance
— Whale (@WhaleChart) October 29, 2023
Some believe that these types of trades are a signal that whales see bullish things ahead for Bitcoin and want to hold their assets using their own private keys.
Although the whale tracker did not provide the transaction address for in-depth analysis, the transfer likely took place in a cold wallet. This is most likely the case, as on-chain data points to continued, intense buying pressure from the bulls to drive Bitcoin’s price higher.
Trigger for Bitcoin recovery?
When large amounts of BTC are removed from the exchanges, it shows that investors are holding their coins for the long term. At the time of writing, Bitcoin is trading at $34,611, and the price action marks a flag in a four-hour chart timeframe.
Using the Fib indicator, a breakout above $35,000 places the next target at $38,000. A more convincing breakout could push Bitcoin’s price to $40,000. On the other hand, creating a lower low below $33,500 would invalidate the flag, and from there we would most likely witness a retracement to $31,000.
4h $BTC
I’m trying to hit a high and tight flag here, the breakout goal is an annual spin of 38k
within the flag we have evidence that A&E and iH&S aka the market refuses to collapse
any new LL= flag will be invalidated and we will likely see a return to 31k pic.twitter.com/QLUXBFSDFj
— Josh Olszewicz (@CarpeNoctom) October 29, 2023
However, continued buying pressure indicates a bullish breakout rather than a bearish breakout. According to data from Santiment, no
#Bitcoin whales have purchased more than 30,000 $BTC in the last five days, worth almost $1 billion! pic.twitter.com/oclJBY5j6a
— Ali (@ali_charts) October 28, 2023
Also, historical data indicates an average price increase from 43% in November for Bitcoin. A similar jump in the next month would see Bitcoin rise to around $48,000.
BTC price at $34,556 | Source: BTCUSD on Tradingview.com
Featured image from iStock, chart from Tradingview.com