The top 10 Bitcoin Whale Inflows have formed a bear signal on-chain, which could be threatening the rally.
Bitcoin top 10 exchange inflows (Whales), form a peak recently
A CryptoQuant analyst has pointed out that BTC’s top ten exchange inflows recently showed a bearish structure.
The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin entering wallets of all exchanges during a specific period.
Investors often deposit BTC on exchanges to sell their crypto. The crypto price can suffer from spikes in the metric.
A modification of this indicator is the “top 10 exchange inflow,” which measures the sum of the ten largest transactions going to centralized exchanges.
Because these transactions usually go to whales these high values may indicate that there is dumping by large Bitcoin holders.
Low top ten inflows may indicate that whales have been selling normal amounts of coins.
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Below is a chart that illustrates the Bitcoin Top Ten Inflows Trend over the Past Few Years.
The indicator appears to be at a peak. Source: CryptoQuant| Source: CryptoQuant
The quant marked key trends for top 10 Bitcoin exchange inflows over the period.
The price of Bitcoin seems to have always fallen after an indicator reaches a peak.
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The top ten whale flows seem to have reached a peak similar again. The pattern could hold true if it continues, which would indicate that the price of the coin is on the decline.
However, it’s also worth noting that the metric hasn’t yet formed a full turn yet, so it could still continue to go up or move sideways and the signal won’t go off.
BTC Prices
Yesterday, Bitcoin’s price finally gained some strong momentum and broke past the $45k barrier. Now, the price is above $47k, a level that the coin hasn’t visited since the very start of the year.
At the time of writing, the coin is trading around $47.2k, up 15% in the last seven days. The crypto gained 25% over the last month.
Below chart displays the five-day trend of Bitcoin’s prices.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Unsplash.com's featured image. Charts by TradingView.com. CryptoQuant.com chart.