Most ‘organic’ Bitcoin pump in years — trader explains why a blow-off top is unlikely

Despite Bitcoin’s (BTC) steep rally in November, the price is consolidating above $15,000 as on-chain analyst, Willy Woo says a blow-off top is unlikely for three main reasons.

The three factors are the growing outflow of funds from exchanges, increase in “HODLers,” and data showing that investors already took profit.

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Bitcoin is moving from exchanges to individual wallets

According to the data from Glassnode, a large amount of Bitcoin has been moving out of centralized exchanges in late October.

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Woo says this metric is optimistic because it shows investors are transferring funds from trading platforms to personal wallets. This indicates that users are holding their BTC with a long-term investment strategy.

Net flows of Bitcoin at exchanges. Source: Glassnode

The analyst noted that Bitcoin saw the highest number of Bitcoin moved out of exchanges in a single day in the past five years. He explained:

“A ridiculous amount of coins were scooped up and moved off to individual wallets. Zooming out, putting this into perspective, it’s the largest one day scoop up in this 5-year chart.”

The number of “HODLers” is rising

In the cryptocurrency market, analysts refer to long-time Bitcoin holders as “HODLers.” They tend to hold onto BTC for prolonged periods, oftentimes for over a year.