TLDR:
Binance Bitcoin withdrawals have quadrupled since October 29, signaling unusual market activity.
Bitcoin trades near $99,679 after a 9.66% weekly decline, according to CoinGecko data.
Analyst Mike McGlone warns BTC could revert to its 48-month average around $56,000.
Rising withdrawals hint at growing investor preference for long-term holding amid volatility.
Bitcoin withdrawals from Binance have risen sharply, signaling shifting investor sentiment amid the ongoing market correction.
Data from analyst Darkfost shows withdrawal transactions have quadrupled since October 29, marking an unusual spike in off-exchange movements. The surge reflects heightened caution among traders, even as Bitcoin remains near $100,000.
Meanwhile, analysts are eyeing technical levels that could shape the cryptocurrency’s next major move.
Rising Withdrawals Reflect Investor Strategy Shifts
According to market observer Darkfost, the recent rise in withdrawal activity highlights growing interest in off-exchange storage.
The pattern suggests investors are moving funds to private wallets rather than selling during the downturn. This behavior indicates confidence in Bitcoin’s long-term prospects, even as short-term volatility increases.
The analyst notes that large-scale withdrawals often occur when traders seek security amid uncertain conditions.
Some participants may also be taking advantage of price dips to accumulate more BTC. This dual behavior, protection and accumulation, has become common during major corrections, shaping liquidity trends across exchanges.
The quadrupling of withdrawals since late October represents a sharp deviation from usual activity levels.
Darkfost described the spike as “a strong signal of unusual activity,” reflecting both strategic repositioning and sustained accumulation by long-term holders. Such moves have historically aligned with early recovery phases following market drawdowns.
Bitcoin’s price performance has continued to waver. Data from CoinGecko shows BTC trading at $99,679, down 2.95% over the past 24 hours and nearly 10% in the last week. The decline reflects broader market adjustments after extended rallies through 2025.
Analyst Eyes $56,000 Mean Reversion Target
Bloomberg Intelligence’s Mike McGlone has cautioned that Bitcoin could revisit its 48-month moving average near $56,000. He noted that mean reversion has been typical for BTC following stretched rallies, describing current price action as a “speed bump” on the road to long-term growth.
McGlone’s analysis points to past instances where Bitcoin corrected sharply before resuming upward momentum. His comments align with prior technical trends showing retracements after extended bull runs.
While the warning underscores caution, it also situates potential downside within Bitcoin’s historical trading behavior.
Despite near-term risks, analysts and traders remain divided over whether this correction signals weakness or consolidation. The recent spike in Binance withdrawals suggests that many investors are holding firm, anticipating eventual recovery once volatility subsides.
The interplay between exchange flows and price action will likely define Bitcoin’s trajectory in the coming weeks.
