According to on-chain data, the Bitcoin exchange whale ratio declined as the cryptocurrency surges past the $24k mark.
The Bitcoin Exchange Whale Ratio is (EMA 7) at 0.50
According to CryptoQuant’s post, the BTC exchange whale rate has been declining while the price of Bitcoin has risen.
The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top 10 Bitcoin transactions to exchanges and the total exchange inflows.
exchange whale ratio = sum of top 10 inflow txs (in BTC) ÷ total exchange inflows (in BTC)
The ten biggest transfers here are taken into account as the majority of them belong to whales. If the ratio is large, this means that whales account for a significant portion of total inflows.
This trend could indicate that the whales may be buying at this time, as investors often send their BTCs to exchanges. and hence can be bearish for the crypto’s price.
However, low metric values could indicate that whales are currently receiving a greater proportion of total inflows. Such a trend could be either neutral or bullish for the coin’s value.
Below is a chart of the seven-day exponential moving average Bitcoin exchange whale ratio. It covers the month.
Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Bitcoin exchange whale (EMA-7) was below 0.50 in seven of the eight most recent days.
This is the dumping threshold of the EMA-7 version. The indicator was below it recently so the selling pressure has been very low from whales.
While the ratio has gone down, BTC’s price has enjoyed some upwards momentum as the coin surged up above the $24k mark earlier today.
BTC Prices
At the time of writing, Bitcoin’s price floats around $23.5k, down 1% in the last seven days. In the past month, crypto’s value has risen 15%.
Below is a chart showing the change in coin price over the past five days.
The crypto value seems to have seen an upwards trend in the last few days. Source: BTCUSD on tradingView| Source: BTCUSD on TradingView
Around ten days ago Bitcoin had recovered above $23k, but only a few days later the crypto’s price again started to go downhill. In the past few days however, Bitcoin experienced a sharp uptrend as it reached $23k.
Earlier today, BTC even broke above $24k, though it wasn’t long before the crypto saw a slump and came down to the current level.
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com
