The Bitcoin exchange whale ratio is on the rise. This could indicate that large-scale holders are beginning to sell.
At the moment, almost 90% of Bitcoin Exchange Inflows is due to whales
A CryptoQuant analyst points out that whales might be increasing their dumping. This could indicate that BTC is on the verge of a bear market.
The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten Bitcoin transactions to exchanges and the total exchange inflows.
The whales are often responsible for the 10 largest transactions on exchanges. This can help us determine the ratio of whale flows to the rest.
If this metric has a high value (that is above 85%), then whales make up an important part of current exchange inflows.
A high value could suggest that whales might be mass dumping right now, something which may prove bearish for Bitcoin’s price.
However, a value below 85% could indicate that whale sales are taking place in the market. This metric will usually remain in the same range during bull run.
Related Reading| Bitcoin Market Plunges Into Extreme Fear, How Scary Does It Get?
This chart shows how the Bitcoin exchange whales ratio has changed over 72 hours (72-hour MA) since 2022.
It seems that the value of this indicator has increased in recent months | Source: CryptoQuant
You can see that the ratio of Bitcoin exchange whales has risen and is approaching 90%.
The ratio may indicate that whales could be ramping up their dumping now. Earlier in the month, the ratio exceeded the 90% point and the coin’s price plummeted down to below $26k.
RRead More: New Data shows China still controls 21% of the global Bitcoin mining hashrate| New Data Shows China Still Controls 21% Of The Global Bitcoin Mining Hashrate
The cryptocurrency could face more problems if the indicator continues to rise and another trend is observed.
BTC price
At the time of writing, Bitcoin’s price floats around $29.7k, down 6% in the last seven days. The crypto’s value has fallen 25% over the last month.
The chart below shows how the currency’s price has changed over the course of five days.
It seems like crypto's price has largely moved in the opposite direction over the last few days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Since Bitcoin’s quick rebound back above the $30k level from the crash down to below $26k, the coin hasn’t shown much movement.
At the moment, it’s unclear when BTC may break out of this consolidation that it has been stuck in during the past week.
Unsplash.com featured image, Charts from TradingVIew.com and CryptoQuant.com charts