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.

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.

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.