As evidenced by data on the chain, Bitcoin’s latest rally has slowed as it shows signs that whales are dumping.
Bitcoin Exchange Whale Ratio – At High Values
In a CryptoQuant article, an analyst noted that BTC whales were sending coins to cryptocurrency exchanges right now.
The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten transactions to exchanges and the total Bitcoin exchange inflows.
Simply put, it shows us the ratio of the value going into exchanges to the number of whale transactions.
A high value ratio means that whales make up a significant portion of inflows at the moment. Such a trend can be a sign of dumping from these whales, and thus can be bearish for the crypto’s price.
Two Months Of Extreme Fear Leaves Crypto In Panic, Bitcoin At $20K| Two Months Of Extreme Fear Leaves Crypto In Panic, Bitcoin At $20K
However, the low value of the indicator suggests that whales account for a large portion of inflows at the moment. BTC can be bullish or neutral depending on this trend.
Here’s a chart showing the Bitcoin exchange whale ratio trend over the past few months.
CryptoQuant reports that the 72-hour MA value for this metric is high. Source: CryptoQuant| Source: CryptoQuant
You can see that the Bitcoin exchange whale ratio remains at a high level as you will see from the graph.
Generally, the indicator’s value remains less than 0.85 during bull markets, while it stays at higher values than that in bear market periods.
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At the moment, the ratio stands above 0.90. This means that over 90% of exchange inflows are from transactions larger than ten. This could indicate that whales may be dumpling at the moment.
Bitcoin had attempted to recover from the recent low of $18k but has since slowed as its value appears to have moved sideways.
It is possible that this halt could be caused by selling whales, which the exchange whale ratio signals right now.
At the time of writing, Bitcoin’s price floats around $20.7k, down 2% in the last seven days. In the past month, crypto lost 31%.
The chart below shows how the currency’s price has changed over the course of five days.
The crypto market seems to have been growing sideways in recent days. Source: TradingView.| Source: BTCUSD on TradingView
Featured image from Fábio Hanashiro on Unsplash.com, charts from TradingView.com, CryptoQuant.com