Binance, the leading cryptocurrency exchange, made history by witnessing more than 58K Bitcoin (BTC) leave the platform and into personal wallets. And it all happened within 24 hours.

Although Binance is a beehive of crypto activities, this is the first time such vast amounts of BTC are moving out of the exchange.

According to CryptoQuant, a virtual currency data platform, the withdrawals amounted to 58,861 BTC and estimated to be worth slightly above $900 million at the time of writing.

However, the destination and intention were not clear. But, the trend is a common practice by whales anticipating a BTC rally. Also, the whales could be moving their wealth to conduct an OTC trade. One thing is exact, whether a Bitcoin rally is in the offing or an over the counter trade has occurred, whales are moving money.

According to a firm analyzing Bitcoin blockchain data, Whalemap, whales have been recently spotted above the waters, and funds are moving.

On November 4, the firm posted on Twitter, saying they have witnessed unusually high levels of activities on the coin's decentralized platform. Consequently, the activities have culminated in "large volumes" of BTC belonging to hodlers "moving in profit" and deposited in the hodlers' wallets.

Why's it moving in profit, but out of crypto exchanges?

"Moving in profit" is a common phrase used when funds are moving between whales instead of cryptocurrency exchanges. The occurrence is interpreted to mean BTC is headed for a significant rally. Due to the massive amounts of funds held by whales, and to boost the security of the coins, whales prefer using offline wallets that they have complete control.

However, when they're ready to empty a section of their bags, they deposit the funds into custodial wallets such as in a digital currency exchange. The current trend is, however, different. Instead of offloading their cold wallets, they're loading them. They are moving their funds from Binance to their hardware storage.

This shows that they may have wanted to sell on the exchange but changed their minds. Now, it's time to hold on tight in anticipation of better prices during the presumed upcoming rally.

Analysts from Whalemap, while interpreting the large volume of BTC moving from Binance and the general heightened level of on-chain activity, noted that the signal is a "strong level" and may last for "some time."

Unfortunately, they added, it's a "bubble." Therefore, when and for how long it will stay inflated is largely unpredictable since it can burst at any time.

Are whales fearing the security of Binance and other exchanges?

But even with a projected rally, why are whales moving such huge amounts from crypto trading platforms? Won't they incur costs when moving them back to exchanges since a rally is on its way?

Well, there are possible explanations as to why the whales are loading more funds to their offline addresses. For example, Bitcoin has been on an upward trajectory making more investors hold on to their virtual wealth at prices above $13K. At this level, there's less willingness to sell.

In the recent past, technical indications show that after Bitcoin price hits $14.2K, there's a high chance that it will have an almost clear and smooth path towards $20K. Apart from a reduced appetite to sell, a considerable number of the whales packed their bags at a price of between $13K and $13.3K.

Over the counter trades involving whales may be another reason huge amounts of funds are moving off exchanges. In such a scenario, massive BTC hodlers may be seeking liquidity from OTC platforms when dealing with huge orders. Note that seeking liquidity from regular trading on Binance and other exchanges will have a substantial negative impact on Bitcoin's overall price. The effect can send Bitcoin spiraling, forcing it to abandon its current upward trajectory.

Are the U.S. elections having an impact on Bitcoin's price?

Not negatively. During the entire election period, BTC has been appreciating in value. For instance, during the early days of the elections, the king crypto was hovering around $13.8K and $14.2K. When the voting was closed, the price stayed above $14K.

At the time of writing, as the U.S. waits for the final verdict to know who, between Donald Trump and Joe Biden, will be their next president, Bitcoin was at $15,615 according to Coinmarketcap.

However, for Bitcoin to have an impactful rally, it has to keep a strong resistance above $13.8K. Also, establishing a stable ground above $14K provides more fuel for a sustainable upward trend.