Exchange Whale Ratio Suggests Bitcoin Dump Incoming
03 Enero 2022 - 1:00PM
NEWSBTC
On-chain data shows Bitcoin exchange whale ratio has started
rising, suggesting that a dump of the crypto may be coming soon.
Bitcoin Whales Now Account For 90% Of Inflow To Exchanges As
pointed out by a CryptoQuant post, the exchange whale ratio has
risen above 0.9, implying that dumping may be going on in the
market. The “exchange whale ratio” is an indicator that measures
the ratio between the total Bitcoin amount of top 10 transactions
to exchanges and the total inflows. In simpler terms, the metric
tells us how the ten largest transactions to exchanges compare with
the total amount of coins moving to exchanges. When the indicator
has values lower than 0.85, it means that the ten largest
transactions to exchanges (which are assumed to belong to whales)
make up for less than 85% of the total Bitcoin inflow amount. Such
values have been historically healthy for the market. On the other
hand, when the metric reaches high values, it implies the top ten
transactions make up for most of the inflows to exchanges.
Investors usually move their Bitcoin to exchanges for selling
purposes. So, this trend may show that whales are currently dumping
as they are moving vast amounts of coins to exchanges. Related
Reading | Year 2021 Data Cements Bitcoin As Risk-On Asset Now,
here is a chart that shows the trend in BTC exchange whale ratio
over the past few months: Looks like the value of the indicator has
risen recently | Source: CryptoQuant As you can see in the above
graph, the Bitcoin exchange whale ratio has now exceeded values of
0.9. This means that the top ten transactions now make up for more
than 90% of the inflows. Whenever the indicator has reached high
values recently, the price of the coin has suffered downtrend soon
after, as the chart shows. Related Reading | Why Did China Ban
Bitcoin Mining? Here Are The Seven Leading Theories This could mean
that the current high values of the exchange whale ratio may also
prove to be bearish for the price of Bitcoin. BTC Price At the time
of writing, Bitcoin’s price floats around $47.3k, down 7% in the
last seven days, Over the past month, the crypto has lost 16% in
value. The below chart shows the trend in the price of the coin
over the last five days. BTC's price seems to be consolidating
again | Source: BTCUSD on TradingView Bitcoin looked to have
finally broken out of consolidation some days back, but the crypto
has now once again fallen back down into the $45k to $50k price
range. It’s unclear at the moment when the coin may beat this
stagnation, or which direction it may break in. However, if the
exchange whale ratio is anything to go by, more decline in the
price of BTC could soon be coming. Featured image from
Unsplash.com, charts from TradignView.com, CryptoQuant.com
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