Bitcoin’s latest price recovery rally has now slowed down as on-chain data shows signs of dumping from the whales.
Bitcoin Exchange Whale Ratio Continues to Stay High
As a CryptoQuant analyst points out mailBTC whales are currently sending their coins to exchanges.
The Exchange Whale Ratio is a metric that measures the ratio between the sum of the top ten transactions on exchanges and the total influx of Bitcoin exchanges.
Simply put, this metric shows us how whale transactions (that is, the top ten transfers) compare to the total amount flowing into exchanges.
If the value of this ratio is high, then the whales are now replenishing most of the inflow. Such a trend could be a sign of dumping by these whales and therefore could be bearish for the price of the cryptocurrency.
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On the other hand, low values of the indicator mean that whales currently make up a significant part of the influx. This trend could turn out to be either neutral or bullish for the value of BTC.
And now here is a chart showing the trend of the Bitcoin Whale ratio over the past few months:
The 72-hour MA value of the metric seems to have been high recently | Source: CryptoQuant
As you can see in the chart above, the bitcoin exchange whale ratio has remained at fairly high levels in recent days.
Typically, the indicator stays below 0.85 during a bull market while it stays at higher values than during a bear market.
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The current value of the ratio is above 0.90, which means that more than 90% of the exchange’s inflow comes from the ten largest transactions right now. This may be a hint that the whales are currently shedding.
Bitcoin has attempted to recover in the past few days after hitting a low below $18,000, but the gains have now slowed as the value of the coin now appears to be moving sideways.
This halt in movement could be caused by whale sales, which is being signaled right now by the stock whale ratio.
At the time of writing, the price of Bitcoin is hovering around $20.7k, down 2% over the past seven days. Over the past month, the cryptocurrency has lost 31% in price.
The chart below shows the price dynamics of the coin over the past five days.
Looks like the value of the crypto has been consolidating sideways over the past few days | Source: BTCUSD on TradingView
Featured image from Fábio Hanashiro on Unsplash.com, charts from TradingView.com, CryptoQuant.com
Credit : www.newsbtc.com