Bitcoin price briefly surged above $107,000 on Monday before falling back below $105,000, amid a significant increase in whale activity that has sent over 19,500 BTC worth around $2 billion to Binance since mid-October, according to CryptoQuant.
The firm’s analysis shows that a large spike in whale inflows, where transactions exceed 1,000 BTC, signals a change in key investor behavior and adds to selling pressure on Bitcoin’s price. However, the inflows have slowed over the past week, suggesting the worst of the selling may be over.
In addition, macroeconomic pressures, the U.S. Federal Reserve’s cautious policy, and regulatory uncertainty continue to hamper Bitcoin’s recovery. Data shows a key resistance zone between $107,000 and $118,000, where long-term holders are increasing inflows to exchanges to take profits.
At the same time, mining activity has also increased with over 71,000 BTC transferred to Binance since early November. October saw over 200,000 BTC move, reflecting an annual pattern of rebalancing towards the end of the year.
While increased deposits to exchanges usually signal selling pressure, CryptoQuant stressed that miners’ moves are now more geared towards maintaining operational liquidity than selling for profit, reflecting a healthy balance in the mining industry amid increased derivatives trading activity.
